OREANDA-NEWS. On August 10, 2009 Fitch Ratings confirmed JSC Ukreximbank ratings, including its Long-Term IDR at “B” with the Negative Outlook, the latter being only bounded by the Outlook ceiling on the sovereign long-term IDR. The Bank’s unvarying ratings are underpinned by its state ownership and important role in cross-border economic relations of Ukraine, reported the press-centre of Ukreximbank.

According to Fitch, Ukrexim Individual rating affirmed at “D” reflects the Bank’s significant loan loss absorption capacity, manageable levels of loan impairment and adequate liquidity position, stable customer funding as well as sound corporate franchise referred to companies involved in foreign trade with access to foreign currency revenues.

Fitch notes that although Ukrexim asset quality weakened during 1H2009, but to a lesser extent than at peer banks, as defined by 90 days+ NPLs at only 1.5% at end-1H2009. Along with this, Fitch estimates that only a minority of restructured and extended loans represent problem exposures.

Reiterating the Bank business course, Fitch notes that foreign currency loans are in most part made to exporters with foreign currency revenues, the proportion of such loans reduced to 58% at end-1H2009 from 78% at end-2008.

Ukrexim continues to experience regular support from its sole shareholder, the Government of Ukraine, through continuous equity injections. With this regard, two large injections along with USD250mn subordinated loan from the EBRD notably raise Ukrexim regulatory capital adequacy ratio to 22.9% at end-1H2009 from 10.6% at end-2008, all over 10% regulatory minimum.

Fitch confirms that Ukrexim liquidity level is comfortable with highly liquid assets covering 45% of client funds at end-1H2009. The Bank was less affected by 4Q2008 market turbulence and its customer funds grew by 19% in 1H09. Foreign funding maturing before end-Jun2010 is moderate at 7% of end-1H2009 liabilities.