|
|
 |
|
Viewing report
|
|
|
|
Bank Industry Risk Analysis: Ukraine (Republic of) May 04
Standard & Poors, May 2004
Abstract
The economic and industry risks pertaining to the banking system of the Republic of Ukraine (B/Positive/B) are among the highest of rated sovereigns. The country's lack of structural reform, low corporate accounting standards, and inadequate legal system, all contribute to a poor operating environment for the banks. In addition, the banking sector's credit risk management and capital is feeble, and credit growth and exchange risk is high, making it vulnerable to deterioration in the macroeconomic environment, including currency depreciation. Nevertheless, improved macroeconomic performance and lower inflation in recent years, and a forecast of modest economic growth in the medium term, should prevent a deterioration in the banks' financial position. However, to improve their creditworthiness, banks need to develop greater transparency...
Companies mentioned in this report are: International Finance Corp.,European Bank for Reconstruction and Development,Ukraine,PrivatBank
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
Research Type: Commentary
Criteria articles describe the thought process and methodology Standard & Poor's analysts use in determining ratings. These commentary pieces discuss both the quantitative (economic and financial) and qualitative (business analysis and caliber of management) aspects of the analysis, as well as legal issues.
|
|
|
|
