Independent authorized rating agency IBI-Rating announces confirmed individual reliability rating of JSC BTA Bank deposits at 5 (excellent reliability)
Confirmed individual deposit reliability rating reflects good reputation of the financial institution, which had no significant claims from clients during the reviewed period. Also IBI-Rating agency believes that the Bank may rely on the support from its owners. Besides, the Bank promptly complies with its obligations and regulatory requirements, consistently maintains the necessary amount of funds on correspondent accounts and fulfilling the requirements of daily and monthly reservation of funds with the NBU. Capitalization and volume and share of liquid assets are at a high level. Further development of the Bank and increase in credit investment portfolio will lead to gradual decrease in actual capital adequacy ratios. There is growth in outstanding debt, which, given the Bank's existing dependence from the financial position of individual borrowers, increases its vulnerability to credit risk and may put pressure on its liquidity and capitalization. Concentration of the resource base with major creditors and customer deposit portfolio with major investors limits the Bank's financial flexibility and increases liquidity risk. The Bank’s KPI remain low.
Factors maintaining the credit rating: decrease in the concentration of the resource base by creditors, improved asset quality, reduced dependence of the Bank on the financial position of major borrowers, increased profitability, implementation of key development strategies of the Bank. Factors constraining the credit rating: decrease in the Bank's solvency (liquidity), increased credit risks due to deteriorating asset quality, decrease in KPIs, as well as deterioration in the financial markets and in the economy as a whole.
Analytical study used data from JSC BTA Bank, including annual financial statements for 2009-2012 and January-May 2013, other necessary inside information, as well as information from open sources deemed reliable by the rating agency.
