News feed

Інформаційні партнери:

 

 

 

 

 


JSB “Ukrgasbank” has been assigned credit rating at the level uaBBB+


04/11/2011

During the period 05.09.2011 - 31.10.2011 analytical department of RA “Expert-Rating” conducted rating research of JSB “Ukrgasbank” activity. November 1, 2011 the rating committee of RA “Expert-Rating” has decided to assign credit rating of borrower JSC “Ukrgasbank” at the level uaBBB+, and also bond rating of JSC “Ukrgasbank” Series C,D and E at the level uaBBB+.

Full substantiation of rating assigned by RA “Expert-Rating” is contained in the rating report. When assigning investment level of rating, the Rating committee has been guided by the following:

1. History analysis of Bank’s development has shown that during all the period of its activity Ukrgasbank has been demonstrating stable growth dynamics that has enabled to provide its presence in all the segments of the national market of bank services, and also his occurrence in the twenty largest banks of the country. As of the beginning of 2011 the national network of Bank has been represented by 280 points of sale for more than 24000 businesses and 800000 individuals. The Agency estimates the proportion of JSB “Ukrgasbank” on the Ukrainian market of banking services in the range of 1.2-1.7%.

2. In 2009 Ukrgasbank has undergone a number of changes. Taking into account financial situation, which occurred in the country in 2009, Ukrgasbank’s shareholders agreed on the need in additional capitalization of financial institution and appealed to the Government. At the moment of assigning the rating 92,9998% of Bank’s shares belong to The Ministry of finance of Ukraine. According to RA “Expert-Rating” the shareholders are able to provide high level of external support and if it’s necessary to provide the bank with hryvnia liquidity in the given volumes.

3. Infusion of considerable resources into Bank’s equity from the main shareholder, in its turn, has contributed to maintaining positive dynamics of key indicators of its activity. So, in the 1 half of 2011 in comparison to the same period of 2010 there has been rise in all the main financial positions of the Bank: shareholders’ equity has increased by 222,2%, assets – by 19,13%, credit portfolio – by 16,23%, individuals’ funds – by 9,55%, funds of legal entities – by 41,79%, net profit – by 7,81% and level of capital adequacy (H2) has constituted a record 49,4%.

4. Analysis of Bank’s assets quality, on the one hand, indicates an increased level of problem loans in the Bank’s loan portfolio, and on the other hand, represents stable dynamics of decreasing the proportion of problem loans, that is certainly a sign of positive dynamics of this financial institution. It also should be admitted that loans provisions are generated in sufficient volume in order to cover them.

5. Analysis of profitability indicators of the Bank for last 5 years shows that before the crisis they were at the sufficient high level and demonstrated positive dynamics. So, before 2009 return of equity (ROE) ranged 6–14%, return of sales (ROS) was at the level 14–22%, but considerable losses of 2009 crossed out reached positions. In 2010 there has begun the process of restoring profitability indicators of the Bank – indicators ROE, ROS and ROA have returned to positive plane.

6. At the moment of assigning the credit rating three series of JSB “Ukrgasbank” bonds C, D and E have been in circulation for the total of UAH 500 m. As of 01.07.2011 shareholder’s equity of the bank has constituted UAH 6,289 bln and there has been excess value of liquidity norms and Bank’s capital adequacy, therefore, these issue volumes do not bear a significant debt burden that provides them with rating of investment level.

At the moment credit rating of Bank and its bonds in circulation restrain macroeconomic risks, which the Bank key shareholder depend on, and also risks of assets formed in 2009. Credit rating of JSB “Ukrgasbank” can be upgraded provided the profitable activity and the decrease in the proportion of problem assets.

Analytical department of RA «Expert-Rating»

 

Rating report of JSC “Ukrgasbank” (english version) - 01.11.2011

Share on livejournal.com Share on twitter.com