OREANDA-NEWS. August 17, 2010. Credit-Rating, a nationally recognized credit rating agency in Ukraine has announced that it assigned a long-term credit rating of uaBBB- (uaBBB minus) to the Kiev-based UNEX JSCB (‘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 1H2010 and its other inside information.

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.

Factors maintaining the credit rating:

The bank is affiliated with Smart-Holding, which associates large mining and metallurgical companies, agricultural and ship-building enterprises.

Bank’s sufficient capitalization and performance efficiency ratios.

Low specific gravity of overdue debts in customer loan portfolio of 0.1% as at Jul. 1, 2010.

Factors constraining the credit rating:

Extreme concentrations in the loan portfolio by major borrowers combined with high net credit risk, which may negatively affect bank’s liquidity and capitalization.

Bank’s insignificant clientele beyond the companies incorporated in the group.

The bank requires enhancements in its risk management system.

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