IBI-Rating upgraded the credit rating «VECTOR BANK» PJSC to uaBBB grade with a change in outlook from «stable» to «developing»

IBI-Rating informs on upgrading of the credit rating of «VECTOR BANK » PJSC from uaBBB- grade to uaBBB grade with a change in outlook from «stable» to «developing».

Upgrading of the credit rating and the change in the outlook of «VECTOR BANK» PJSC is due to positive changes in activities of the Bank, its financial indicators and involvement of the Bank’s management who have substantial experience and relevant competencies. It should be noted that assets and liabilities by maturity up to 31 days are properly balanced, as well as a sufficient level of actual values of liquidity ratios, leveling its current risk. However, realization of certain financial risks may exert pressure on liquidity because of the existing exceptional concentration of the customer loan portfolio by major borrowers. At the same time the Rating agency notes acceptable diversification of the customer deposit portfolio by major depositors. Strengthening of the Bank’s market position in conditions of increased competition is constrained by insignificant development of its regional network and absence of card business under increasing conditions of competition. During the period under review activities of «VECTOR BANK» PJSC remain profitable, and performance indicators remain at a sufficient level.

IBI-Rating currently sees positive changes in the Bank’s activities and its financial indicators (increase in performance indicators), which along with the preservation of good quality of assets and diversification of the customer deposit portfolio by major depositors, as well as as improved diversification of the resource base by major creditors, and the customer loan portfolio by major borrowers, increased profitability and performance, may result in changes of the outlook or review of the rating grade. Downgrading of the rating 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, loss-making activities and decline of performance indicators, as well as worsening of the political and economic situation in the country.

In order to perform the analytical research the materials provided by «VECTOR BANK» PJSC, were used, including: financial statements for 2014-2015 and 3 months of 2016, target performance indicators for 2016 рік, other necessary internal information, as well as the information from the public sources, which the rating agency considers reliable.

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