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IBI-Rating has affirmed the rating of bank deposit reliability of "BTA Bank" PJSC at 5 grade
29.12.2015IBI-Rating informs on the affirmation of the rating of bank deposit reliability of "BTA Bank" PJSC at 5 grade (excellent reliability).
Rating of bank deposit reliability at grade 5 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, and has a good reputation. The likelihood of problems with a timely return of deposits is low, as the financial institution is not highly 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 affirmation of the rating grade of "BTA Bank" PJSC is due to its maintaining of the high level of capitalization, with its capital being secured by the real estate property owned by the Bank. The Bank meets its obligations to creditors in a timely manner and in full. The actual values of liquidity ratios are at a high level, including through additional investing in the treasury securities issued by the NBU. The quality of highly liquid assets is at a good level. However, the realization of credit and market risks, as well as the Bank's existing dependence on major corporate customers may put pressure on Banks' liquidity. At the same time, the quality of assets continues to deteriorate gradually, and the volume of overdue debts remains high. The main sources of the resource base are clients' funds and the owner’s funds, taking into account the authorized capital. However, the existing concentration of the resource base by major creditors increases the Bank’vulnerability to liquidity risk. Performance indicators declined due to the reflection of the derivative financial instrument, - the option (within the transition to IFRS).
A positive impact on the rating of bank deposit reliability may have the following: reduced dependence on the financial condition of major borrowers, reducing the concentration of the resource base by the creditors. A negative impact on the rating of bank deposit reliability may have the following: deterioration of the Bank’s solvency (liquidity), the realization of the credit risk due to deterioration of quality of the granted loans, the Bank’s increased vulnerability to market risks, 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 "BTA Bank" PJSC were used, including the annual financial statements for 2011-2014 and 9 months of 2015, target performance indicators for 2016, 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
Rating of bank deposit reliability at grade 5 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, and has a good reputation. The likelihood of problems with a timely return of deposits is low, as the financial institution is not highly 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 affirmation of the rating grade of "BTA Bank" PJSC is due to its maintaining of the high level of capitalization, with its capital being secured by the real estate property owned by the Bank. The Bank meets its obligations to creditors in a timely manner and in full. The actual values of liquidity ratios are at a high level, including through additional investing in the treasury securities issued by the NBU. The quality of highly liquid assets is at a good level. However, the realization of credit and market risks, as well as the Bank's existing dependence on major corporate customers may put pressure on Banks' liquidity. At the same time, the quality of assets continues to deteriorate gradually, and the volume of overdue debts remains high. The main sources of the resource base are clients' funds and the owner’s funds, taking into account the authorized capital. However, the existing concentration of the resource base by major creditors increases the Bank’vulnerability to liquidity risk. Performance indicators declined due to the reflection of the derivative financial instrument, - the option (within the transition to IFRS). A positive impact on the rating of bank deposit reliability may have the following: reduced dependence on the financial condition of major borrowers, reducing the concentration of the resource base by the creditors. A negative impact on the rating of bank deposit reliability may have the following: deterioration of the Bank’s solvency (liquidity), the realization of the credit risk due to deterioration of quality of the granted loans, the Bank’s increased vulnerability to market risks, 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 "BTA Bank" PJSC were used, including the annual financial statements for 2011-2014 and 9 months of 2015, target performance indicators for 2016, 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