IBI-Rating agency announces it has confirmed the JSC Oschadbank’s credit rating of uaAA+, with a stable outlook.
Thus, the conclusion reached is that financial stability of this financial institution can be explained by the key role it plays in the economic policy of the government, and support from the latter. The capitalization ratio of the bank has been scaled as appropriate. Persisting sensitivity to credit risks the bank is still demonstrating is due to growth in its loan debt portfolio. The bank has already diversified the deposit portfolio of major borrowers. Reportedly, it has borrowed a large amount of money from the NBU. Its assets and liabilities are well-balanced, as regards loan repayment. The bank’s performance shows a good level of profitability, its key performance indicators are high.
Credit rating can be evaluated as positive in case the quality of the credit portfolio increases and concentration reduces, as regards major borrowers. Conversely, a negative impact occurs from worsening of creditworthiness (liquidity), increase in credit risks due to deterioration in asset quality that can affect financial highlights, and worsening of the political and economic situation in the country.
The analytical analysis is based on the data received from JSC Oschadbank, including: annual reports and financial statements for 2010–2013 and 3rd quarter of 2014, data on key performance indicators scheduled for 2015, other internal and open source information that the rating agency believes to be reliable.