One June 21, 2019, at the Rating Committee of the National Rating Agency “Rurik”, “BANK SICH” JSC (EDRPOU code 37716841) was rated as the long-term credit user.
To rate, the National Rating Agency “Rurik” used the corporate documents and quarter financial statements for the period from January 01, 2018, to April 01, 2019, provided by “BANK SICH” JSC, as well as public records and their internal data bases.
Having analyzed the Rating report No SICHB-КРП-002-ОН, the long-term credit rating of “BANK SICH” JSC was decided to be raised to uaAA + investment category with the forecast as “stable”.
According to the National Rating scale approved by Decision No 665 of the Cabinet of Ministers of Ukraine on April 26, 2007, a credit user or debt instrument rated as uaАА is described by high creditworthiness compared to other Ukrainian credit users or debit instruments.
Forecast as “stable” means that the rating remains constant in the near future.
Symbol “+” shows the intermediate level of the rating in relation to other levels.
To rate, the most crucial factors influencing the credit rating of banking institutions were accounted. Positive factors for “BANK SICH” JSC are the following:
- High liquidity ratio. As of April 01, 2019, liquidity coverage ratios (LCR) significantly exceeded the minimum level. The ratio of highly liquid assets to current liabilities was 99.58% with a recommended minimum of 70%.
- High quality of securities portfolio. As of the reporting date, the Bank’s securities portfolio was represented by government bonds and NBU certificates of deposit. The volume of interest income on securities in the 1st quarter 2019 amounted to UAH 2.67 million.
- Sufficient indexes of effectiveness. Within 3 months in 2019, the Bank received UAH 0.45 million of net profit with the ratio of effectiveness 108.58%.
- Sufficient level of asset protection by equity. As of April 01, 2019, level of coverage of assets and loan & investment portfolio by equity amounted to 23.32% and 46.51%, respectively.
- High level of the Bank’s financial transparency and disclosure, which was reflected in the detailed and comprehensive disclosure of information required for the credit rating. Thus, degree of uncertainty in the assessment of creditworthiness and analysis of financial & economic activities of the Bank was reduced.
Apart from the above, the National Rating Agency “Rurik” rated the safety of deposits in “BANK SICH” JSC as r4.
Safety level r4 means a high safety of deposits; the Bank moderately depends on the financial & economic conditions and market environment. Probability of return of deposits is high.