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IBI-Rating has affirmed the credit rating of PJSC "APECS - BANK» at uaBBB grade
11.09.2015IBI-Rating informs on the affirmation of the credit rating of PJSC "APECS Bank" at uaBBB grade, preserving the «stable» outlook.
The affirmed credit rating of PJSC "APECS - BANK" is a result of its maintaining sufficient capital ratios. The Bank is susceptible to the credit risk as a consequence of the increased concentration of the client loan portfolio by major borrowers. Also, there remains a significant concentration of the resource base by major creditors and the client deposit portfolio by major depositors. In addition, there is an increasing vulnerability of the Bank to certain financial risks due to the market conditions and the unstable situation in the country. Assets and liabilities of the financial institution are well balanced on the terms to maturity of up to 31 days. During the analyzed period, the Bank's activities were unprofitable. PJSC "APECS - BANK" demonstrates information transparency and openness.
A positive impact on the credit rating may have the following: the improved quality of assets and reduced dependence on the financial condition of major borrowers, the reduced concentration of the resource base by creditors and the client deposit portfolio by major depositors, as well as the implementation of the main directions of the Bank’s development strategy. A negative impact on the credit rating may have the following: the deterioration of the Bank’s solvency (liquidity), the growth of credit risks due to the asset quality deterioration, the Bank's increased vulnerability to market risks, the decline in performance indicators and keeping up of unprofitable activities, as well as the aggravated political and economic situation in the country.
In order to perform the analytical research the following materials have been used: the documents provided by PJSC "APECS - BANK", including the annual financial statements for 2011-2014 and quarterly financial statements for the Ist half of 2015, the target performance indicators for the IInd half of 2015, other necessary internal information, as well as the information from public sources, which the rating agency considers reliable.
The affirmed credit rating of PJSC "APECS - BANK" is a result of its maintaining sufficient capital ratios. The Bank is susceptible to the credit risk as a consequence of the increased concentration of the client loan portfolio by major borrowers. Also, there remains a significant concentration of the resource base by major creditors and the client deposit portfolio by major depositors. In addition, there is an increasing vulnerability of the Bank to certain financial risks due to the market conditions and the unstable situation in the country. Assets and liabilities of the financial institution are well balanced on the terms to maturity of up to 31 days. During the analyzed period, the Bank's activities were unprofitable. PJSC "APECS - BANK" demonstrates information transparency and openness.
A positive impact on the credit rating may have the following: the improved quality of assets and reduced dependence on the financial condition of major borrowers, the reduced concentration of the resource base by creditors and the client deposit portfolio by major depositors, as well as the implementation of the main directions of the Bank’s development strategy. A negative impact on the credit rating may have the following: the deterioration of the Bank’s solvency (liquidity), the growth of credit risks due to the asset quality deterioration, the Bank's increased vulnerability to market risks, the decline in performance indicators and keeping up of unprofitable activities, as well as the aggravated political and economic situation in the country.
In order to perform the analytical research the following materials have been used: the documents provided by PJSC "APECS - BANK", including the annual financial statements for 2011-2014 and quarterly financial statements for the Ist half of 2015, the target performance indicators for the IInd half of 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
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press(at)ibi.com.ua