OREANDA-NEWS. September 22, 2009. Credit-Rating, a nationally recognized credit rating agency in Ukraine has today announced that it affirmed at uaAA the long-term credit rating assigned to Kiev-based Universal Bank PJSC (‘bank’). The outlook on the rating is stable. Credit-Rating has also affirmed at ‘5’ (the highest strength) the bank’s BRD (bank deposit rating). To revise the rating Credit-Rating considered bank’s financial statements for 2004-2009 and its other inside information.

An obligor or a debt liability with uaAA credit rating is characterized with the VERY STRONG creditworthiness as compared to other Ukrainian obligors or debt liabilities.

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

The BDR of ‘5’ (the highest strength) denotes that the bank is reliable with its vulnerability to adverse commercial, financial and economic factors being low. The probability of bank's failure to return deposits is extremely low.

Factors maintaining the credit rating

In case of need the bank may get necessary backing from the core shareholder EFG Group, which is the leading international financial group.

Bank’s sufficient capitalization and availability of relatively cheap resource base, which enables the bank to maintain competitive standing in the market.

The bank’s assets and liabilities are well balanced by their due terms.

The bank operates a wide-spread branch network.

Factors constraining the credit rating

Bank’s current experience of losses, which has been prompted by eroded asset quality.

The bank conducts its activities in a high-risky segment of consumer lending, with a considerable portion of loans granted in foreign currencies, which negatively affects quality of bank’s loan portfolio.

The growing impact of external factors on the financial market and decrease in business activities in certain industries have negatively affected solvency of certain borrowers and weighed on bank’s financial indicators.