25 October 2019, the international rating Agency S&P Global Ratings has assigned the Ukrainian JSC “ALLIANCE BANK” long-term and short-term Issuer credit ratings at “b-/B”. The forecast on ratings — “Stable”.
“Standard&Poor’s among the top three most influential international rating agencies, and their positive assessment of the activity of “ALLIANCE BANK” is a significant event for us. Confirmation of the position of the Bank is a positive signal for our customers, partners and other stakeholders,” said Yulia Frolova, Chairman of the Board of JSC “ALLIANCE BANK”.
According to the Agency, the “Bank Alliance” much less bad loans than the average of the Ukrainian banking system and the Bank has an adequate liquidity cushion. JSC “ALLIANCE BANK” — a niche player and specializiruetsya on corporate segment (companies small and medium businesses), and predicted S&P Global in 2020 will continue to show rapid growth, albeit implemented with a very low base. The Bank occupies the 31st place in the Ukrainian banking sector in terms of assets among the 76 banks with licenses: as of 30 September 2019, the value of its assets was $ 2912 million (about 122 million dollars), commitments — about 2500 million, the market share of only 0.2%.
The Bank’s loan portfolio is characterized by concentration on the wholesale trade companies selling mainly chemical products, gas and consumer goods, and companies providing transport services, in particular in the direction of the air and companies engaged in agricultural activities.
As a positive factor that could affect asset quality in the future, S&P Global notes short maturities of loans. So, there was a maturity 74% of the loans does not exceed one year. In addition, 31% of loans denominated in foreign currency, issued mainly to companies that receive foreign currency. It should be noted that the indicators of problem debt on documentary operations and credit portfolio, remains extremely low — less than 1%.
“Cooperation with international institutions is an integral part of the development strategy of the Bank in 2019-2020 international credit rating will certainly improve the level of confidence in the Bank and, accordingly, to expand the list of already existing international partners. Today, the Bank is already actively involved in a number of loan programs. The highest priority are projects aimed at supporting the development of the private sector (small business projects), credit programs in the agricultural sector, as well as projects of socio-economic infrastructure, including energy efficiency projects”, — comments Yulia Frolova.