OREANDA-NEWS. January 23, 2008. Credit-Rating, a nationally recognized credit rating agency in Ukraine has assigned a long-term credit rating of uaBB+ to UAH10m 5-year coupon bonds (E and F series) to be issued by Lugansk-based Eastern-Industrial Commercial Bank LLC, the agency's press service reported. In the course of analysis Credit-Rating considered Banks financial statements for 2002-2006 and 9M2007 as well as other inside information furnished by the Bank.

An obligor or a debt liability with uaBB credit rating is characterized with the LOWER THAN SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is strongly affected by adverse changes in commercial, financial and economic conditions. The plus (+) or minus (-) modifier denotes ratings relative status within major categories.

Factors maintaining the credit rating.

    * The Banks performance indicators have remained stably high over the past 5 years; specifically the ROA exceeds 2 per cent, with the indicator of performance efficiency making up a. 150 per cent as of Oct.1, 2007.
    * The specific gravity of overdue and doubtful loans account for 0,01% as of Oct.1, 2007.
    * The Banks assets and liabilities are balanced by terms to maturity and by currencies.

Factors constraining the credit rating.

    * High level of concentrations in the Banks loan portfolio on primary borrowers (over 190 per cent of the 1st tier capital account for 20 biggest borrowers), accompanied by low reserves attributable to loan operations may negatively affect Banks liquidity and capitalization.
    * The highly concentrated resource base coupled with the Banks limited capacity for lure of customers makes the Bank dependant upon financial state of a low number of its customers, thus raising the liquidity risks.
    * The Banks risk management requires further enhancements in the framework of the Banks development strategy.
    * The Bank is exposed to loss of its market share provided that large systemic banks would further augment their market positions.