OREANDA-NEWS. On July 23, 2008 The leading international rating agency Fitch Ratings has affirmed VAB Bank’s “B-” Long-term Issuer Default Rating, “B” Short-term IDR, “D/E” Individual rating, Support “5”, “BBB-(ukr)” National Long-term Rating. The Long-term IDR and National Long-term ratings carry Stable outlook, reported the press-centre of VAB Bank.

Simultaneously, Fitch has also affirmed the ratings of Credit Suisse International's USD125m 10,125% issue of loan participation notes due 2010 at Recovery 'RR4' and Long-term 'B-' (B minus). The notes were issued solely to finance a loan to VAB.

The ratings acknowledge the bank’s reasonable asset quality, declining business concentrations, improvement in operating performance and timely equity injections.

The ratings have been influenced by the bank’s rapid loan book growth and the risks associated with it, tightening liquidity and high operating costs due to ongoing dynamic retail franchise growth and branch network expansion in line with the adopted strategy.

Since 2006, VAB’s focus has been on expanding its retail lending operations and by end-H108, retail lending comprised about 30% of the loan book. Also, reflecting the bank’s active retail deposit collection in the last years, the retail funding share outstripped the share of corporate funding for the first time in 2007.