OREANDA-NEWS. On 13 May 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBB to registered coupon bonds (series A) to be issued by Kiev-based Bank for Investments and Savings LLC (BIS). The amount of the issue is UAH15m, with 2-year original maturity. In the course of analysis Credit-Rating considered bank`s financial statements for 2005-2007 as well as its other inside information.

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.

Factors maintaining the credit rating

Bank`s sufficient capitalization and high profitability from its main activity in 2007.
There has been no overdue and doubtful indebtedness in bank`s loan portfolio over the entire period of bank`s operation.
The bank`s management team enjoy significant experience in banking.

Factors constraining the credit rating

The bank`s loan portfolio is extremely concentrated on primary borrowers, which accompanied by insignificant volume of reserves for loan operations, may negatively affect bank`s liquidity and capitalization.

High concentration of resource base on primary borrowers, which makes the bank dependant upon financial state of a low number of its customers.

Bank`s assets and liabilities are balanced insufficiently by their due terms coupled with high bank`s dependency upon market environment (over 50% of bank`s liabilities are formed with funds from banks), which all raises the liquidity risks.

The bank has insignificant number of customers amid non-affiliated parties.

The bank requires enhancements in its risk management system.

The bank suffers from underdeveloped branch network and card segment, which may hamper bank`s achievement of its strategic goals provided that big systemic banks would further augment their market positions.