OREANDA-NEWS. On 06 April 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it assigned a long-term credit rating of uaBBB+ (uaBBB plus) to Kiev-based ASTRA BANK OJSC (bank). In the course of analysis Credit-Rating considered banks financial statements for 2008-2009 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Factors maintaining the credit rating

The bank may get necessary backing from its principal shareholder Greece-domiciled ALPHA BANK A.E., which is associated with Alpha Bank Group Greece.

The banks loan portfolio is well diversified by primary borrowers and industries.

Low specific gravity of overdue and doubtful indebtedness in the banks loan portfolio.

High banks capitalization and liquidity ratios.

Factors constraining the credit rating

Low indicators of banks profitability coupled with high administrative expenses, which is prompted by banks short period of operation.

Banks limited capacity for attracting new customers, which is connected with banks underdeveloped branch network and card segment.

Increasing impact of external factors on the financial market and declined business activities in certain economy sectors, as well as deteriorated solvency of some borrowers, which may negatively affect banks liquidity and capitalization.