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IBI-Rating has affirmed the credit rating of "BANK VECTOR" PJSC at uaBBB- grade
17.12.2015IBI-Rating informs on the affirmation of the credit rating of "BANK VECTOR" PJSC at uaBBB- grade with a "stable" outlook.
The affirmation of the credit rating of "BANK VECTOR" PJSC is due to maintaining by the financial institution of high capitalization ratios. At the same time, the Bank's vulnerability to certain financial risks is likely to increase due to the market conditions and unstable situation in the country. The rating agency notes the Bank’s adequate liquidity, which is confirmed by the actual values of the liquidity ratios. Also of note is the balance of assets and liabilities by terms to maturity of up to 31 days. However, the realization of certain financial risks may put pressure on the liquidity because of the exceptional concentration of the customer loan portfolio by major borrowers and presence of a significant concentration of the resource base by major creditors, but there has been some decline in the latter. The presence of a concentration of securities portfolio by major issuers, which exposes the Bank to market risks, should also be noted. Strengthening of the Bank’s market positions in the conditions of increased competition is limited by the weak development of the regional network and absence of card business. During the analyzed period, the activities of "BANK VECTOR" PJSC were profitable.
IBI-Rating does not yet see the factors that may lead to upgrading of the Bank's credit rating in the short term. Downgrading of the credit rating is possible in the event of worsening of the Bank’s solvency (liquidity); growth of credit risk due to deterioration of servicing of the granted loans and reduced quality of the securities portfolio, as well as the deterioration of the political and economic situation in the country.
In order to carry out the analytical research the materials provided by "BANK VECTOR" PJSC were used, including the financial statements for 2014 and 9 months of 2015, performance targets for 2015, other necessary internal information as well as the information from the public sources, which the Rating agency considers reliable.
Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua
The affirmation of the credit rating of "BANK VECTOR" PJSC is due to maintaining by the financial institution of high capitalization ratios. At the same time, the Bank's vulnerability to certain financial risks is likely to increase due to the market conditions and unstable situation in the country. The rating agency notes the Bank’s adequate liquidity, which is confirmed by the actual values of the liquidity ratios. Also of note is the balance of assets and liabilities by terms to maturity of up to 31 days. However, the realization of certain financial risks may put pressure on the liquidity because of the exceptional concentration of the customer loan portfolio by major borrowers and presence of a significant concentration of the resource base by major creditors, but there has been some decline in the latter. The presence of a concentration of securities portfolio by major issuers, which exposes the Bank to market risks, should also be noted. Strengthening of the Bank’s market positions in the conditions of increased competition is limited by the weak development of the regional network and absence of card business. During the analyzed period, the activities of "BANK VECTOR" PJSC were profitable.
IBI-Rating does not yet see the factors that may lead to upgrading of the Bank's credit rating in the short term. Downgrading of the credit rating is possible in the event of worsening of the Bank’s solvency (liquidity); growth of credit risk due to deterioration of servicing of the granted loans and reduced quality of the securities portfolio, as well as the deterioration of the political and economic situation in the country.
In order to carry out the analytical research the materials provided by "BANK VECTOR" PJSC were used, including the financial statements for 2014 and 9 months of 2015, performance targets for 2015, other necessary internal information as well as the information from the public sources, which the Rating agency considers reliable.
Finance department
For more information please contact:
Press service of IBI-Rating
(044) 362-90-84
press(at)ibi.com.ua