Financial news

Ratings review for 11.10.2007

Fitch assigned "B-" rating to OJSC "Creditprombank"

International rating agency Fitch assigned a long-term rating "B-", short-term rating "B", support rating "5" and individual rating D/E to OJSC "Creditprombank" forming the group of the biggest. This is informed in the message of the agency.

Fitch also assigned Creditprombank the rating "BBB-" on national scale.

The forecast of long-term rating and rating on national scale — "stable".

According to Fitch, Creditprombank is controlled by citizen of Greece Konstantinos Papunidis.
According to rating scale of Fitch, ratings of the group "B" mean availability of credit risks having a limited safety factor. As the agency informed net assets of Creditprombank as of 1 July 2007 made up UAH 9 645,3 mln., credit portfolio — UAH 6 250,3 mln., equity — UAH 880,9 mln.

January-June 2007 was finished by the Bank with net income UAH 12,871 mln., for 2006 it got the profit UAH 66,748 mln.
The biggest shareholders of the bank are citizen of Greece Konstantinos Papunidis (chairman of supervisory board of Creditprombank) with the share 13,9%, company Homertron Trading Limited (Ireland) — 49,9% and company Fintest Holding Limited (Cyprus) with share 24,24%.

"Credit-Rating" assigned to the planned issue of bonds of "B" series of IC "Galaktika" for UAH 25 mln. the rating "uaBB+"

Rating agency "Credit-Rating" (Kyiv) assigned to the planned issue of registered interest bonds of "B" series of insurance company "Galaktika" (Kyiv) for UAH 25 mln. a long-term credit rating "uaBB+".

This is informed in the message of the company. Ukrainski Novyny possess the text of this message.
Rating "uaBB" means that in case of unfavorable economic circumstances the risk of nonpayment can occur. Plus it indicates for intermediate, in relation to the main, rating category. Factors, supporting rating level — insurance payments growth to the company in the 1 half a year of 2007 in comparison with 2006 1,3 times by UAH 38 mln.; outgoing reinsurance share as of 1 July does not exceed 18% and rate of insurance compensation payments — 21%; net insurance reserves of the company according to the results of 1 half a year of 2007 make up 43,7% (almost a half) of its net capital (25,9% as of the beginning of the year).
Factors limiting rating level — detrimental activity of the company during 2005-2006; more than half of the company's assets (54,4% as of 1 July) make up long-term investments into shares, about 80% of them are not included into the listing of trade systems; activity of the company in the most risky and competitive segments of insurance services market.
Bonds circulation term — 4 years.
As the agency informed, IN "Galaktika" is registered in the form of the closed joint-stock company, is specialized on services rendering in risk insurance segment.
The company was found in 1998.

Source: Information agency Сbonds