OREANDA-NEWS. August 18, 2011. Credit-Rating upgraded the long-term credit rating assigned to ZLATOBANK JSC (Kiev, Ukraine) from uaBBB to uaBBBplus with stable outlook. To revise the rating Credit-Rating considered financial statements of ZLATOBANK JSC for 2009, 2010 and 1Q 2011, as well as other inside information submitted by ZLATOBANK JSC within the rating procedure.

An obligor or a debt liability withuaBBBcredit 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 "-" signs indicate intermediary categories compared to the standard categories (grades).

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

Factors maintaining the credit rating:

adequate capitalization and performance indices;

low loan arrears ratio to total clients loan portfolio (0,82% as of 1 July 2011);

regional network expansion and low level of administration costs;

expected increase of statutory capital.

Factors constraining the credit rating:

small client base caused by short period of activity;

essential loan portfolio concentration by key borrowers which causes Bank dependence on their financial state and may have negative impact on Bank liquidity and capitalization;

funding base concentration by basic lenders (backers) restraining Bank’s financial flexibility;

low business activity and sophisticated business environment in particular economic sectors having negative impact on payable demand on bank lending, as well as on Bank’s financial indices.