Credit-Rating Revises Number of Bank Deposit Ratings

OREANDA-NEWS. January 12, 2011. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it revised a number of bank deposit ratings (‘BDR’) previously assigned to Ukrainian banks.

Basing on the current data, which reflect performance of the banks, Credit-Rating has upgraded to ‘5’ from ‘4’ a BDR assigned to one bank. The BDRs assigned to other banking institutions have been affirmed at their current levels. The majority of the banks (30) represent average strength of deposits bearing rating ‘3’. The BDR of ‘5’ (the highest strength) is assigned to 8 institutions, with the number of banks carrying rating ’4’ (high strength) recorded at 15. The strength of deposits in 3 banks is below average carrying rating ‘2’.

The bank deposit ratings have dynamic nature and may be revised following events and/or changes in indicators of bank’s performance, which may affect the bank’s capacity to make timely and full payments on its deposit obligations. As of today, 18 banking institutions have disclosed their BDRs as follows:

Further change of the rating is contingent upon bank’s capacity to maintain its indicators on a sufficient level under adverse economic environment in the country. The rating is also considerably affected by changes in operating environment, notably of the regulator’s policy affecting the banking sector, and willingness and ability of the state or owners to furnish necessary backing to the institution in case of necessity.