OREANDA-NEWS. November 3, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) to registered coupon bonds (series B) issued by Kiev-based Business Standard Joint-Stock Bank (Public) JSC (‘bank’) for the amount of UAH100m due Sep. 23, 2015. The outlook on the rating is stable. In the course of the rating procedure Credit-Rating considered bank’s financial statements for 2009 and 1H2010 and its other inside information.

An obligor or a debt liability with uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus "plus" and a minus "minus" signs indicate intermediary categories compared to the standard categories (grades).

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

Factors maintaining the credit rating

Bank’s sufficient capitalization ratios.

Adequate indicators of the bank’s performance efficiency.

Factors constraining the credit rating

Concentrations in the loan portfolio by major borrowers, which, coupled with low level of provisions, may negatively affect bank’s liquidity and capitalization ratios.

Concentrations of the bank’s resources by main creditors - that constrains bank’s financial flexibility and raises liquidity risks.

High specific gravity of overdue debts in the loan portfolio.

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