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

02.10.2015
IBI-Rating informs on the affirmation of the rating of bank deposit reliability of "CREDITWEST BANK" PJSC at grade 5 (excellent reliability).

The rating of bank deposit reliability at grade 5 indicates that the financial institution is reliable, it timely meets its obligations within the requirements established by current legislation of Ukraine, including those of the NBU, and has a good reputation. The likelihood of arrisal of problems related to the timely return of deposits is low, because the financial institution is not very 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 financial institution’s high level of capitalization but the capital provides only partial coverage of credit and investment risks. At the same time, according to IBI-Rating, the Bank, if necessary, can count on support of the owners, as evidenced by an increase in the share capital and presence of a significant amount of the owner’s funds in the structure of the Bank's liabilities. The structure of the regulatory capital consists primarily of shareholders' funds in the form of both registered capital and subordinated debt. The amount of highly liquid assets is at high level and almost fully covers current liabilities. The asset quality is maintained at a good level, however, the implementation of credit and market risks may put pressure on the Bank’s liquidity. "CREDITWEST BANK" PJSC adheres to regulatory requirements, and meets its obligations to creditors in a timely manner and in full. During the analyzed period, due to the existing exceptional concentration of the customer loan portfolio by major borrowers the Bank’s vulnerability to certain financial risks enhanced. The main component of the resource base are amounts due to customers and the owners’ funds. However, the existing concentration of both the resource base by major creditors and the customer deposit portfolio by major depositors, increases the Bank's vulnerability to liquidity risk. In addition, the impact of the susceptibility to financial risks may increase as a result of the persistence of negative trends in the economy and reduced solvency of borrowers. However, the Rating agency did not find any significant complaints from the customers to the Bank. By the results of 9 months of 2015 the Bank's activity was profitable, and performance indicators of "CREDITWEST BANK" PJSC continued to be high.

A positive impact on the rating of bank deposit reliability may have the following: reduced dependence on the financial condition of the Bank's major borrowers, reduced concentration of the resource base by creditors and the customer deposit portfolio by major depositors, reduced dependence on the financial condition of major issuers, as well as the implementation of the main directions of the Bank’s development strategy. A negative impact on the rating of bank deposit reliability may have the following: the deterioration of the Bank’s solvency (liquidity), the growth of credit risks due to a decline in loan servicing and increased vulnerability of the Bank to market risks, decrease of performance indicators, loss-making operations, as well as deterioration of the political and economic situation in the country.

In order to perform the analytical research the materials provided by "CREDITWEST BANK" PJSC were used, including the annual financial statements for 2011-2014 and January-September 2015, other necessary internal information as well as the information from public sources, which the rating agency considers reliable.

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