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

21.07.2016
IBI-Rating informs on affirming of the rating of bank deposit reliability of «CREDITWEST 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 grade of the rating of bank deposit reliability of «CREDITWEST BANK» PJSC is due to the Bank’s meeting its obligations to creditors in a timely manner and in full volume. In addition, the Bank’s capitalization remains at a high level, and the volume of highly liquid assets is sufficient. In the structure of the latter, balances on correspondent accounts at other banks prevail. The actual economic liquidity ratios significantly exceed the minimum acceptable values established by the NBU. The portfolio of relatively cheap customers’ funds, which are primarily balances on current accounts of enterprises, forms the basis of the resource base. The quality of of such resources is sufficient. In addition, a significant part of the resource base constitute attracted from the owners funds insusceptible to market risk. At the same time, there remains concentration of attracted resources by major creditors, which constraints the Bank’s financial flexibility and increases its sensitivity to liquidity risk.

The rating agency notes good asset quality of «CREDITWEST BANK» PJSC. At the same time, there remains significant concentration of the Bank’s credit portfolio by certain borrowers, which increases its susceptibility to credit risk. In addition, the existing significant amount of foreign currency denominated loans and absence of foreign currency earnings of certain borrowers may adversely affect some financial indicators. Persisting negative trends in the economy and the unstable situation in the country increases sensitivity of banking institutions, including «CREDITWEST BANK» PJSC, to certain financial risks.

Assets and liabilities are balanced by their terms to maturity. At the same time, dependence of the Bank on its major corporate customers both in the resource base, and in the structure of assets may exert pressure on the Bank's liquidity and increases its susceptibility to certain financial risks.

By results of activities in 2015 and 1Q 2016, operations of «CREDITWEST BANK» PJSC were profitable, and performance indicators were sufficient.

IBI-Rating currently sees no factors that may lead to increasing of the grade of the Bank’s rating of bank deposit reliability in the short term. Lowering of the grade of the Bank’s rating of bank deposit reliability 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, decreased performance indicators and loss-making activities, as well as deterioration of the political and economic situation in the country.

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

Finance department

For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua