IBI-Rating has affirmed the rating of bank deposit reliability of «BTA BANK» PJSC at 5 grade

Rating agency IBI-Rating informs on affirming of the rating of bank deposit reliability of «BTA BANK» PJSC at 5 grade (excellent reliability). Rating of bank deposit reliability at grade 5 indicates that the financial institution is reliable, pays its obligations timely within the requirements established by the current legislation of Ukraine, including those of the National Bank of Ukraine, and has a good reputation. The likelihood of problems with a timely return of deposits is low, as the financial institution is not highly sensitive to the impact of external and internal factors. The impact assessment of external factors does not apply to the situations involving force majeure circumstances.

The affirmed rating grade of «BTA BANK» PJSC is due to its maintaining of high level of capitalization, with its capital being secured by the real estate property owned by the Bank. The Bank meets its obligations to creditors in a timely manner and in full volume. The actual values of liquidity ratios considerably exceed the minimum acceptable ratios established by the NBU. However, further deterioration in loan quality and a possible outflow of customer funds may exert pressure on Banks' liquidity and increases its susceptibility to certain financial risks. During the period under review, the Bank’s dependence on the financial condition of a small number of borrowers increased, leading to an increase of the Bank’s vulnerability to credit risk. Apart from that, the impact on susceptibility to certain financial risks may increase as a result of persisting negative tendencies in the economy and further decline of borrowers’ solvency. At the same time, the rating agency IBI-Rating notes reduction of the Bank's vulnerability to currency risk by repayment of foreign currency denominated loans.

A key component of the resource base remain the owner’s funds and customers’ funds. The latter are primarily formed by term deposits of individuals. However, the Bank's resource base is inherent in dependence on major creditors, which constraints the Bank's financial flexibility and increases the Bank's susceptibility to liquidity risk. During the period under review, the Bank's activities were profitable.

IBI-Rating currently sees no factors that may lead to changes in the Bank grade of the rating of bank deposit reliability in the short term. The following factors may have an impact on the credit rating grade: changes in the level 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, decreased profitability, as well as deterioration of the political and economic situation in the country.

In order to conduct the analytical research the materials provided by «BTA BANK» PJSC, have been used, including: annual financial statements for 2013–2015, other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

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