OREANDA-NEWS. On 15 April 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it upgraded to uaA- (uaA minus) from uaBBB+ (uaBBB plus) the long-term credit rating assigned to Kiev-based Energobank JSB (`bank`) and its registered coupon bonds (series B) for the amount of UAH65m due Nov. 19, 2013. The outlook on the rating has been changed to stable. To revise the rating Credit-Rating considered bank`s financial statements for 2007-2008 and 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. A plus "+" and a minus "-" signs indicate intermediary categories compared to the standard categories (grades).

Stable outlook indicates that there are no anticipated reasons to change the rating in the course of the year.

Factors maintaining the credit rating

The bank may get necessary backing in case of need from its principal owner Russia-domiciled National Reserve Corporation CJSC.

The bank enjoys efficient risk management system.

The bank`s profit margins are sufficient combined with low share of non-performing loans.

Factors constraining the credit rating

High concentrations in the bank`s resource base, which limits bank`s financial flexibility and exposes the institution to liquidity risks.

High concentration of the bank`s loan portfolio accompanied by declined business activities in certain industries, which may prompt erosions in bank`s credit profile and negatively affect its liquidity and capitalization.