OREANDA-NEWS  On 05 September Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it upgraded to uaBBB- (uaBBB minus) from uaBB+ (uaBB plus) the long-term credit rating assigned to Kiev-based Fortuna-Bank LLC (`bank`). The rating outlook has been changed to stable. To revise the rating 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 uaBBB credit rating is characterized with the SUFFICIENT creditworthiness as compared to other Ukrainian obligors or debt liabilities. This level of creditworthiness is affected by adverse changes in commercial, financial and economic conditions. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating
Bank`s sufficient capitalization, which have positive impact on the interest margin.
Bank`s vigorous growth (in 1H2008 the growth in loan and investment portfolio made up 86% and that in the equity 60%).
Low specific gravity of overdue and doubtful debts in the customer loan portfolio (0.7% as of Jul. 1, 2008).
Bank`s information openness and transparency.

Factors constraining the credit rating
High level of concentration on bank`s principal borrowers (about 320% of the 1st Tier capital account for 20 biggest borrowers), which, coupled with low level of reserves, may negatively affect bank`s liquidity and capitalization.
Bank`s limited clientele, and, consequently, high level of concentrations in the resources attracted, which makes the bank dependant upon financial state of a small number of its customers and raises the liquidity risks.
The bank requires enhancements in risk management system.
The bank is exposed to loss of its market share in the hotly competitive environment.