Credit-Rating Upgrades First Investment Bank OJSC to uaBBB-
OREANDA-NEWS. On 21 May 2009 Credit-Rating, a nationally recognized credit rating agency in Ukraine announced that it upgraded to uaBBB- (provisional) (uaBBB minus) from uaBB+ (uaBB plus) the long-term credit rating assigned to Kiev-based First Investment Bank OJSC (`bank`). The outlook on the rating has been changed to stable. The rating was assigned to the bank on November 22,
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).
`Stable` outlook indicates that there are no anticipated reasons to change the rating in the course of the year.
`Provisional` indicates the rating assigned with consideration of probability/improbability of events, which may substantially affect credibility of the entity rated. Such rating may be confirmed or changed basing on the information, which has been obtained after such events occurred (or situation remained unchanged).
Factors maintaining the credit rating
Bank`s sufficient capitalization.
High profitability of the bank`s principal activity.
Support from the shareholders and anticipated increase in bank`s stock.
Factors constraining the credit rating
High volume of overdue and trouble indebtedness.
High concentration of the customer loan portfolio by primary borrowers, which may negatively affect bank`s liquidity and capitalization.
The bank`s assets and liabilities are unbalanced by maturity terms.
Growing impact of external factors on the financial market combined with decline in business activities in certain industries, which may have negative impact on solvency of certain borrowers and on bank`s liquidity and capitalization.
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