OREANDA-NEWS. March 4, 2011. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it assigned its long-term rating of uaA- (uaA minus) with stable outlook to registered coupon bonds (series G, H) issued by Kharkiv-based Megabank PJSC (‘bank’). The amount of the issue is UAH100m. In the course of the rating procedure Credit-Rating considered bank’s financial statements for 2006-2010 and its other inside information.

An obligor or a debt liability with uaA credit rating is characterized with the HIGHLY 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. A plus "+" and a 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 combined with the option of provision of backing from shareholders in case of need.

Bank’s adequate liquidity indicators.

Satisfactory quality of the resource base and of income-generating assets.

The bank operates an integral system of payments for utilities, which provides the bank with diversification of incomes and creates possibilities for development of retailing business (the number of accounts of the General accounting centre has been reported at around 2 million).

Factors constraining the credit rating

Concentrations in the loan portfolio, which may weigh on the bank’s liquidity and capitalization.

Low indicators of performance efficiency combined with insignificant provisioning for lending transactions.

Low business activities and persisting adverse environment in certain sectors of economy, which constrain effective demand for lending and affects negatively bank’s key figures.