OREANDA-NEWS. July 15, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it assigned a long-term credit rating of uaA- (uaA minus) to Donetsk-based PROFIN BANK PJSC (‘bank’). The outlook on the rating is stable. In the course of the rating procedure Credit-Rating considered bank’s financial statements for 2005-2009 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

In case of necessity the bank may get backing from its shareholder, which is associated with Societe Generale – one of the biggest groups providing financial services in euro area.

Diversification of the bank’s customer loan portfolio by major borrowers.

High indicators of bank’s liquidity and capitalization.

Factors constraining the credit rating

Poor quality of the bank’s customer loan portfolio combined with significant volume of net credit risk.

Bank’s low indicators of performance efficiency.

Opacity with regard to bank’s development strategy, prompted by a ban on foreign currency lending to individuals.

Retaining adverse environment in the financial market and real sector of economy which may undermine solvency of certain bank’s borrowers and weighs on bank’s financial indicators.