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IBI-Rating has affirmed the rating of bank deposit reliability of Joint-Stock Commercial «Industry and Finance Bank» at 4 grade (high reliability)

11.10.2016
IBI-Rating informs on affirming of the rating of bank deposit reliability of Joint-Stock Commercial «Industry and Finance Bank» at 4 grade (high reliability).

Rating of bank deposit reliability at grade 4 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. The problems with a timely return of deposits are unlikely to arise, although there is a certain dependence of the financial institution on 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 is due to high indicators of capitalization and liquidity of Joint-Stock Commercial «Industry and Finance Bank». The Bank meets its obligations to creditors in a timely manner and in full. In addition, the Bank demonstrates the ability to generate capital from operating activities. At the same time, there remain concentration of the customer loan portfolio by major borrowers and the risk of further impairment of provision if negative trends in the country’s economy persist. At the same time, the Rating agency notes the low level of distressed assets. The borrowed resources are mainly formed by amounts due to customers. The quality of the borrowed resources remains acceptable. At the same time, there remains a high level of concentration of the borrowed resources by major counterparties, which may increase the Bank's sensitivity to certain financial risks.

During the period under review, activities of Joint-Stock Commercial «Industrial-Financial Bank» were profitable. Performance indicators of core activities are maintained at a sufficient level. At the same time, the financial result is susceptible to changes in the operating environment.

Upgrading of the rating of bank deposit reliability is possible in the event of registration of the banking group and an increase in the Bank’s capitalization given maintaining acceptable quality of key financial indicators. Downgrading of the 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, increased unprofitability, as well as deterioration of the political and economic situation in the country.


In order to conduct the analytical research the materials provided by Joint-Stock Commercial «Industry and Finance Bank» have been used, including: annual financial statements for 2013-2015 and 6 months of 2016 , other necessary internal information, as well as the information from the public sources, which the Rating agency considers credible.

Financial Department.

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