IBI-Rating has assigned a bank deposit reliability rating of JSC ‘CREDITWEST BANK’ at level ‘5’

IBI-Rating informs about the assignment of the bank deposit reliability rating of JSC ‘CREDITWEST BANK’ at level ‘5’ (excellent reliability). The bank deposit reliability rating at level‘5’ shows that the financial institution is reliable and reputable, it meets its obligations in a timely manner and under the requirements established by the current legislation, including those of the National Bank of Ukraine. The problems with the timely return of deposits are very unlikely to arise, because the financial institution has a low susceptibility to the impact of the external and internal factors.

The bank deposit reliability rating of JSC ‘CREDITWEST BANK’ is substantiated by a sufficient level capitalization of the Bank: the adequacy of the regulatory capital is at 47%, at the rate of over 10%. It should be noted, that the Bank independently generates the capital through profit, which it accumulates in the reserve fund, and in the future, it plans to increase the statutory capital. JSC ‘CREDITWEST BANK’ fulfills its obligations to creditors and regulatory requirements in full and in a timely manner. The assets and liabilities are not properly balanced by maturity, but the liquidity indicators exceed the values set by the normative standards. However, the Bank can count on the support of the owners, if it is necessary. The susceptibility of the Bank to the credit risk increases significantly by the existing dependence on major borrowers, which, in the opinion of ‘IBI-Rating’ agency, in the conditions of the devaluation of the national currency and the decline in real income, may put pressure on liquidity and capitalization of the Bank. However, these risks are hedged by the property sureties of business owners, most of whom are foreign citizens. A key component of the resource base are customer funds, including the funds of the legal entities, that determine a significant concentration of the Bank’s resource base by major lenders as well as the customer deposit portfolio by major depositors, limiting the Bank's financial flexibility and increasing its susceptibility to the liquidity risk. During the analyzed period the Bank's activities were profitable. The performance indicators were at a high level.

A positive impact on the bank deposit reliability rating will have, as follows: the reduced concentration of the resource base by creditors and the customer deposit portfolio by major depositors; the reduced dependence of the Bank on the financial condition of certain borrowers; the implementation of the main directions of the Bank’s development strategy. A negative impact on the bank deposit reliability rating will have, as follows: a significant reduction in solvency (liquidity) of the Bank; an increase of the credit risk due to the deterioration of the quality of assets; the Bank’s increasing susceptibility to the market risks; and the deterioration of the political and economic situation in the country.

The following documents received from JSC ‘CREDITWEST BANK’ have been used in order to carry out the analytic research, including the annual financial statements for 2010-2013 and 3 quarters of 2014, the target performance indicators for 2015, other necessary internal information, as well as the information from the publicly available sources, which the rating agency considers to be reliable.

Department of the financial area ratings

For more information, please, contact:
IBI-Rating press office 
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