OREANDA-NEWS. On 01 September 2008 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaA to Dnepropetrovsk-based Home Credit Bank CJSC (`bank`). In the course of analysis Credit-Rating considered bank`s financial statements for 2004-2007 and 1H2008 as well as its other inside information.

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 may get necessary backing from its principal shareholder - PPF international financial group, which owns financial and insurance companies in Czech Republic, Slovakia, Russia, and in a number of European and Asian countries; the group is currently managing over EUR10bn of assets.

The bank has been expanding its sale channels and card segment, which contributes to further bank`s development and improvement in its key figures.

Diversification of bank`s loan portfolio by principal borrowers (the loans granted to 20 biggest borrowers account for 12.3% of the customer loan portfolio and 53% of 1st tier capital).

High indicators of bank`s capitalization and availability of cheap resource base, which underpins the bank`s market positions.

Bank`s information transparency and openness.

Factors constraining the credit rating

The assets and liabilities are unbalanced by their due terms.

Moderate amount of profit from bank`s principal activities.

The bank requires enhancements in business processes and in risk management strategy on condition that the bank renders services in the riskiest lending segments.