S&P affirms Ukrsotsbank

Standard & Poor's said it affirmed its B long-term counterparty credit rating on Ukrsotsbank OJSC and removed it from CreditWatch where it had been originally placed with positive implications on Feb. 15, 2006.

At the same time, the short-term counterparty credit rating of B was affirmed, the agency said.

The outlook is positive.

The CreditWatch removal reflects the missed March 31 deadline on a purchase agreement for the acquisition of Ukrsotsbank by Intesa Sanpaolo SpA (AA-/stable/A-1+), the agency added.

According to the agency, the ratings on the bank reflect its rapid loan growth, high, but reduced, single-party concentrations in loans and deposits, high lending leverage, marginally adequate capitalization and intensified competition in the Ukrainian banking sector while positive rating factors are the bank's good commercial franchise, better diversification of business mix and earnings, adequate profitability supported by good cost control and the momentum of economic improvements in Ukraine (foreign currency BB-/stable/B, local currency BB/stable/B).

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