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IBI-Rating has affirmed the rating of bank deposit reliability of «BANK «SOFIYSKY» PJSC at grade 4
05.10.2015IBI-Rating informs on the affirmation of the rating of bank deposit reliability of "BANK" SOFIYSKY" PJSC at grade 4 (high reliability).
The rating of bank deposit reliability at grade 4 indicates that the financial institution is reliable, meets its obligations timely and within the requirements established by the current legislation of Ukraine, including those of the National Bank of Ukraine. The likelihood of problems with a timely return of deposits is low, 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 the preservation of an adequate level of the Bank’s capitalization, which meets the regulator’s requirements, but the capital provides only partial coverage of credit and investment risks. "BANK" SOFIYSKY" PJSC meets its obligations in a timely manner and in full. The Rating agency «IBI-Rating» did not find any significant complaints from the customers to the Bank’s operations. However, since December 2014 the Bank has been violating the regulatory ratio of the maximum credit risk exposure to a single counterparty due to the depreciation of the hryvnia.
The asset quality is very good, as evidenced by the absence of overdue indebtedness. However, the Bank’s vulnerability to credit risk is enhanced due to the significant concentration of the customer loan portfolio by major borrowers. Despite the fact that "BANK" SOFIYSKY" PJSC has a concentration of the resource base by major creditors, the Bank's vulnerability to liquidity risk increases. At the same time, because of the persisting negative trends in the economy and the reduced solvency of borrowers, the impact on the financial institution’s sensitivity to certain financial risks may increase. In the opinion of IBI-Rating, if necessary, the Bank can count on the support of the owners. By the results of operations in January-August 2015, the Bank's activity was profitable, and, though the performance indicators of "BANK" SOFIYSKY" PJSC decreased, they remained at an adequate level.
A positive impact on the rating of bank deposit reliability may have the following: improved quality of assets and reduced dependence on the financial condition of the Bank's major borrowers, reduced concentration of the resource base by creditors and the customer 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 rating of bank deposit reliability may have the following: deterioration of the Bank’s solvency (liquidity), growth of credit risks due to decline in loan servicing and increased vulnerability of the Bank to market risks, a decrease of performance indicators, 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 "BANK" SOFIYSKY" PJSC were used, including the annual financial statements for 2012-2014 and January-September 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
(044) 362-90-84
press(at)ibi.com.ua
The rating of bank deposit reliability at grade 4 indicates that the financial institution is reliable, meets its obligations timely and within the requirements established by the current legislation of Ukraine, including those of the National Bank of Ukraine. The likelihood of problems with a timely return of deposits is low, 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 the preservation of an adequate level of the Bank’s capitalization, which meets the regulator’s requirements, but the capital provides only partial coverage of credit and investment risks. "BANK" SOFIYSKY" PJSC meets its obligations in a timely manner and in full. The Rating agency «IBI-Rating» did not find any significant complaints from the customers to the Bank’s operations. However, since December 2014 the Bank has been violating the regulatory ratio of the maximum credit risk exposure to a single counterparty due to the depreciation of the hryvnia. The asset quality is very good, as evidenced by the absence of overdue indebtedness. However, the Bank’s vulnerability to credit risk is enhanced due to the significant concentration of the customer loan portfolio by major borrowers. Despite the fact that "BANK" SOFIYSKY" PJSC has a concentration of the resource base by major creditors, the Bank's vulnerability to liquidity risk increases. At the same time, because of the persisting negative trends in the economy and the reduced solvency of borrowers, the impact on the financial institution’s sensitivity to certain financial risks may increase. In the opinion of IBI-Rating, if necessary, the Bank can count on the support of the owners. By the results of operations in January-August 2015, the Bank's activity was profitable, and, though the performance indicators of "BANK" SOFIYSKY" PJSC decreased, they remained at an adequate level.
A positive impact on the rating of bank deposit reliability may have the following: improved quality of assets and reduced dependence on the financial condition of the Bank's major borrowers, reduced concentration of the resource base by creditors and the customer 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 rating of bank deposit reliability may have the following: deterioration of the Bank’s solvency (liquidity), growth of credit risks due to decline in loan servicing and increased vulnerability of the Bank to market risks, a decrease of performance indicators, 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 "BANK" SOFIYSKY" PJSC were used, including the annual financial statements for 2012-2014 and January-September 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
(044) 362-90-84
press(at)ibi.com.ua