December 10, 2003 | Cbonds
|Moody's Investors Service has assigned to Ukraine's Ukrsotsbank an E+ Financial Strength Rating (FSR), and ratings of B2/NP for long- and short-term foreign currency deposits. All ratings carry stable outlooks. |
Moody's said that the ratings assigned to Ukrsotsbank are constrained by the bank's still difficult and potentially volatile operating environment. The bank is among the top five in the country; hence the rating takes into consideration the bank's relatively high importance for the banking sector and for the economy as a whole. The B2 deposit rating is placed at the country ceiling for such ratings in Ukraine and is constrained by the latter. In the future the rating is likely to follow the movement of the country ceiling.
The bank's E+ financial strength rating is also constrained by a difficult operating environment and therefore increased possibility of external shocks which are beyond the control of the bank. Ukrsotsbank runs a high-cost operation with significant single borrower and industry concentrations. Another constraining element is the low level of free capital (Shareholders' Equity minus Fixed Assets minus Equity in Affiliates) which limits the bank's capability of weathering any adverse developments in its business.
At the same time the FSR is supported by stable performance as well as improving asset quality.
Ukrsotsbank is headquartered in Kiev, Ukraine and reported total IAS assets of US$561.5 million at 31 December 2002.