OREANDA-NEWS. October 01, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it upgraded to uaA from uaBBB+ (uaBBB plus) the long-term credit rating assigned to Kiev-based ASTRA BANK JSC (‘bank’). The outlook on the rating is stable. To revise the rating Credit-Rating considered bank’s financial statements for 2008-2009 and 1H2010 and its other inside information.

An obligor or a debt liability with uaA credit rating is characterized with the HIGH STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is susceptible to adverse changes in commercial, financial and economic conditions.

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year

Factors maintaining the credit rating

In case of necessity the bank may get financial backing from its primary shareholder – Greece-domiciled ALPHA BANK A.E., which is incorporated with a leading international financial group Alpha Bank Group Greece.

Low specific gravity of overdue debt in the bank’s loan portfolio.

Improved diversification of the bank’s loan portfolio and resources by main customers.

High indicators of bank’s performance efficiency.

High ratios of bank’s capitalization and liquidity.

Factors constraining the credit rating

The bank’s net margin is dependant upon environment in the market as a considerable portion of interest margin is being fueled by transactions with domestic bonds and securities issued by the National Bank of Ukraine.

Insufficiently developed branch network and card segment of the bank.

Retaining adverse environment in the financial market and real sector of economy which may undermine solvency of bank’s borrowers and weighs on bank’s financial indicators.