AUB partners news

Kiev (Credit-Rating) July 10, 2007. Credit-Rating, a nationally-recognized credit rating agency in Ukraine has today announced the assignment of the uaBBB+ (uaBBB plus) long-term credit rating to Kiev-based International Commerce Bank OJSC (‘Bank’). In the course of analysis Credit-Rating considered Bank’s financial statements for 2002-2006 and 1Q2007 as well as other inside information furnished by the Bank.

A credit rating of uaBBB is an investment grade rating, indicating an ADEQUATE CAPACITY of an obligor to pay both interest and principal on the given debt liability in the Ukrainian financial market environment. This rating indicates a level of creditworthiness that is more susceptible to adverse changes in commercial, financial and economic conditions than debt obligations with higher investment grade ratings.
The plus (+) or minus (-) modifier denotes rating’s relative status within major categories.

Factors maintaining the credit rating

- Low Bank’s dependency upon major counterparties, in fact the funds of 20 biggest Bank’s creditors made up 24.4% of its liabilities with 10 biggest deposits embracing 16.51% of the client deposit portfolio.
- The specific gravity of overdue and doubtful debts in client credit portfolio amounted to 0.43% as of Apr. 1, 2007.
- Growth in major groups of assets and liabilities has remained proportional and balanced over the past few years, coupled with the retention of upward trend in profitability.
- Bank’s major key indicators remain on the adequate level.

Factors constraining the credit rating

- Concentration of the Bank’s resource basis on certain businesses, in fact the funds of companies involved in financial activity account for 44.76% of the entities’ funds in Bank’s client portfolio.
- Bank’s exposure to loss of its market share provided that big national banks would increase their share on the market.

Information on all the credit ratings assigned in accordance with the Ukrainian national scale may be found at the Credit-Rating’s corporate web-site  www.credit-rating.com.ua , as well as in the REUTERS, BLOOMBERG and FTN MONITOR information systems.