On October 25, 2019, the international rating agency S&P Global Ratings assigned the long-term and short-term credit ratings of the Issuer at the B / B level to the Ukrainian JSC BANK ALLIANCE. Rating outlook is Stable.
“Standard & Poor's is one of the three most influential international rating agencies, and their positive assessment of BANK ALLIANCE is a significant event for us. Confirmation of the Bank's position is a positive signal for our clients, partners and other stakeholders, ”- said Julia Frolova, Chairman of the Board of BANK ALLIANCE.
According to the agency, there are far fewer problem loans at Alliance Bank than the average on the Ukrainian banking system, and the bank has an adequate liquidity cushion. BANK ALLIANCE JSC is a niche player specializing in the corporate segment (small and medium-sized businesses), and S&P Global is projected to continue its rapid growth in 2020, albeit from a very low base. The Bank ranks 31st in the Ukrainian banking sector in terms of assets among 76 licensed banks: as of September 30, 2019, its assets amounted to UAH 2,912 million (about USD 122 million), off-balance sheet liabilities - about UAH 2 500 million, market share - 0.2%.
The Bank's credit portfolio is characterized by a concentration on wholesale trading companies that sell mainly chemical products, gas and consumer goods, as well as companies providing transport services, in particular, in the direction of air transportation, as well as companies engaged in agricultural activities.
As a positive factor that can affect the quality of assets in the future, S&P Global notes short maturities. Yes, the remaining maturity of 74% of loans does not exceed one year. In addition, 31% of loans denominated in foreign currency are issued mainly to companies that receive foreign exchange earnings. It should be noted that the indicators of problematic debt on documentary operations, as well as on the loan portfolio, remain at an extremely low level - less than 1%.
“Cooperation with international institutions is an integral part of the Bank's development strategy for 2019-2020. Having an international credit rating will certainly increase the level of trust in the Bank and, accordingly, expand the list of existing international partners. At present, the Bank is actively involved in a number of loan programs. The most priority are projects aimed at supporting the development of the private sector (small business projects), credit programs in the agricultural sector, as well as socio-economic infrastructure projects, including energy efficiency projects, ”Yulia Frolova comments.
