Moody's lifts Pravex-Bank

Moody's Investors Service said it upgraded to B2 from B3 Pravex-Bank's global local-currency and foreign-currency deposit ratings, as well as the local-currency senior unsecured obligation rating. Moody's also upgraded Pravex-Bank's national scale rating to A3.ua from Baa2.ua.

The ratings boost reflects the bank's stronger financial performance in 2006 and its position in Ukraine's high-margin retail lending market, the agency said. Last year, Pravex-Bank saw its net income soar to $10 million, up more than four times, and reported return on equity of 24.25%, up from 9.7% in 2005.

The bank also saw improved ratings because of its capital injection of $10 million in the first quarter and by its shareholder commitment to invest another $30 million in equity by the end of the second quarter, Moody's added.

At the same time, the bank's rating is bound by its significant liquidity risk and its still limited capital. The bank suffers from fairly weak corporate governance and from its family ownership, complex organizational structure and inefficient business processes, the agency said, although unlike many of its peers, Pravex-Bank lacks significant related-party lending.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.