IBI-Rating has affirmed the credit rating of CB «Lviv» PJSC at uaBBB grade

IBI-Rating informs on affirming of the credit rating of CB «Lviv» PJSC at uaBBB grade keeping the «stable» outlook.

The affirmed credit rating grade of CB «Lviv» PJSC is due to its preserving of acceptable capital ratios given a significant amount of uncovered losses of previous years. Also, it should be noted that the actual values of liquidity ratios exceed significantly the minimum acceptable values established by the NBU. At the same time, the vulnerability of CB «Lviv» PJSC to credit risk remains due to the concentration of the customer loan portfolio by major borrowers. At the same time, Rating agency notes that vulnerability of CB «Lviv» PJSC to certain financial risks is likely to increase due to the market conditions and the unstable situation in the country.

The customer deposit portfolio remains well diversified by major depositors. By results of 2015, Bank activities were unprofitable, which was inter alia caused by the transition to IFRS. During January-March 2016, the Bank’s activities were profitable, but performance indicators remained low.

IBI-Rating currently sees no factors that may lead to increasing of the Bank’s credit rating grade in the short term. Lowering of the credit rating grade is possible in the event of worsening of the Bank’s solvency (liquidity), increased credit risks due to deterioration of servicing of the granted loans, increased vulnerability of the Bank to market risks, increased losses, as well as deterioration of the political and economic situation in the country.

In order to conduct the analytical research the materials provided by CB «Lviv» PJSC, have been used, including: annual financial statements for 2013–2015 and 3 months of 2016, target performance indicators for 2016, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Finance department
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