OREANDA-NEWS. December 19, 2007. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today upgraded to uaA (provisional) from uaBBB the long-term credit rating assigned to Faktorial-Bank JSB, the agency's press service reported. In the course of analysis, Credit-Rating considered Bank's financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the Bank.

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.

Factors maintaining the credit rating:
The Bank has joined SEB Group, which is one of the leading financial groups in Northern Europe serving over 400K corporate and 5m individual customers (SEB has acquired a 97.25 per cent stake in the Bank).

Factors constraining the credit rating:
The Bank's performance efficiency has stably been low over the past 5 years. The Bank requires enhancing in its business procedures and risk management which is necessary for Bank's expansion. The scheduled merger between the institutions, namely Faktorial-Bank JSB and SEB Bank OJSC, imposes additional operating risks, and the change in the ownership structure may lead to squeeze in its clientele.