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

10.04.2015
IBI-Rating informs about the confirmation 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 of capitalization of the Bank. The adequacy of the regulatory capital is at the adequate level. In spite of the reducing of highly liquid assets, the economic indicators exceed the values set by the NBU normative standards. An amount of highly liquid assets is high but the existing dependence on major borrowers and creditors increases the liquidity risk of the Bank. 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. Today, the level of the nonperforming assets is more than 0.5% from the total amount. A key component of the resource base are customer funds, that determine a significant concentration of the Bank’s resource base by major lenders as well as the customer deposit portfolio by major depositors. In the analyzed period, the Bank’s activity has been profitable; the performance indicators as well as the return on assets and equity have had 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 2011-2014 and January-February 2015, 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 
(044) 362-90-84
press(at)ibi.com.ua