OREANDA-NEWS  On 20 October Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB to registered coupon bonds (series B, C) to be issued by Kiev-based Bank Renaissance Capital LLC (`bank`). The amount of the issue is UAH300m, due November 13, 2011. In the course of analysis Credit-Rating considered bank`s financial statements for 2006-2007 and 1H2008 and 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.

Factors maintaining the credit rating

The bank may get necessary backing from Renaissance group of companies, which funds account for significant part of bank`s resources.

Bank`s moderate capitalization coupled with availability of cheap resources, which helps the bank maintain competitive positions in the market.

Expansion of Bank`s sales channels, which contributes to the bank`s further development and enhancements in its financial indicators.

Factors constraining the credit rating

Poor performance indicators accompanied by high administrative expenditures, which is prompted by short period of the bank`s activity and its aggressive development policy.

The bank`s activities are concentrated exclusively in consumer lending, which is characterized with high level of risks and intensified regulator`s control.

Bank`s deteriorated asset quality.

Bank`s poor resource base and its high concentration on the primary borrowers.