October 07, 2008 | Cbonds
|National scale rating downgraded to Baa3.ua from Baa1.ua|
London, 06 October 2008 -- Moody's Investors Service has today placed on
review for possible downgrade Rodovid Bank's
E+ bank financial strength rating (BFSR) and B3 long-term local and
foreign currency deposit and debt ratings. Moody's has also downgraded the
bank's national scale rating (NSR) to Baa3.ua from Baa1.ua.
Moody's rating action has been prompted by a weakening of Rodovid Bank's
liquidity position under the current stressful market conditions. Rodovid
Bank has been historically reliant on short-term corporate deposits and
interbank funding, which creates a significant negative asset-liability gap.
Moody's believes that, under the market conditions prevailing globally and
in Ukraine, Rodovid Bank may have limited resources available to fully
refinance its notable short-term maturity gap.
According to the bank, some refinancing facilities are available from the
National Bank of Ukraine, but the overall volume and timeliness of such
funding remain uncertain. Moody's understands that the bank is in
negotiations with some of its creditors under interbank and corporate
liabilities to extend the tenor of the maturing obligations.
Moody's rating review will focus on the situation with regard to Rodovid
Bank's liquidity position. Failure to minimise the current short-term
liquidity mismatch swiftly through enhancing the bank's liquidity cushion or
refinancing its maturing debt could increase Rodovid Bank's liquidity risk
further and result in a rating downgrade.
With a head office in Kyiv, Ukraine, at end-H1 2008 Rodovid Bank reported
total assets of UAH11.99 billion (US$2.47 billion) and net income of
UAH54.89 million (US$11.3 million) according to financial statements
prepared under the national accounting standards.
Company: Rodovid Bank
|Full company name||Public Joint Stock Company "Rodovid Bank"|
|Country of risk||Ukraine|