IBI-Rating has affirmed the credit rating of "BANK FORWARD" PJSC and D series bonds

IBI-Rating informs on affirming of the credit rating of "BANK FORWARD" PJSC at uaA- grade, with a "developing" outlook, as well as on affirming of the credit rating series D bonds at uaA + grade with a "developing" outlook.

The affirmed credit rating of "BANK FORWARD" PJSC is due to its preserving of sufficient capital ratios during the analyzed period and its equity being secured by the real estate property owned by the Bank, as well as by the available collateral in the form of the Bank’s guarantees for series «D» bond issue, which is subject of rating. At the same time, due to the market conditions and unstable situation in the country the Bank's vulnerability to certain financial risks has increased. It should be noted that a good diversification of the customer loan portfolio by major borrowers has been preserved, while vulnerability to credit risk has increased due to the deterioration in the quality of the borrowers’ servicing of their obligations. The actual liquidity ratios are at a sufficient level.

Concentration of the owner’s funds in the resource base of the financial institution indicates the available support on his part, which is important given that the Bank operates in the risky segment of consumer credit in conditions of the deteriorating situation in the financial markets and in the domestic economy. During the analyzed period the Bank's activities were profitable, but performance indicators declined slightly. "BANK FORWARD" PJSC demonstrates the openness and transparency of information.

A positive impact on the credit ratings may have as follows: increased authorized capital, improved quality of the customer loan portfolio. A negative impact on the credit ratings may have as follows: worsening of the Bank’s solvency (liquidity); growth of credit risk due to continued deterioration in asset quality, the increased vulnerability of the Bank to market risks, decline in performance indicators and unprofitable activities, as well as worsening of the political and economic situation in the country.

In order to carry out the analytical research the materials obtained from "BANK FORWARD" PJSC were used, including the annual financial statements for 2011-2014, and the first half of 2015, performance targets for the second half of 2015, other necessary internal information, as well as the information from the public sources which the Rating agency considers reliable.

Finance department
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