"Credit-Rating" rating agency assigned to Piraeus Bank "stable" credit rating
17 December 2014
Rating Committee of “Credit Rating" agency decided to update the results of the credit rating of financial institutions. According to the results of renovation credit rating of "Piraeus Bank ICB" as of 12, December, 2014 was set at uaA level, the "stable" forecast.
Borrower or a debt instrument with a rating uaA is characterized with high creditworthiness compared to other Ukrainian obligors or debt instruments. "Stable" outlook indicates that there are no suppositions for the rating change during the year. First of all rating is important to those companies that want to warrant their transparency, reliability and financial stability.
Credit rating is a general tool for assessment of creditworthiness of the borrower, the reliability of its debt and the establishment of an appropriate fee for credit risk. It gives the opportunity to claim to potential investors and partners on their creditworthiness, without disclosing confidential information in this case, and to make the borrower and investor relations transparent and efficient.
Recall that on 1 December, 2014 "Credit Rating" rating agency has confirmed the high level of deposits reliability of Piraeus Bank, which has been remaining unchanged since 2009. Mark "5" - the highest reliability, means that the Bank is reliable, with minimal sensitivity to negative business, financial and economic factors. The likelihood of problems with timely return of the deposits is very low.
In contrast to the credit rating, rating of banks’ deposits takes into account the order and priority of meeting obligations by banking institution. Bank deposit rating is correlated with the rating of the financial institution, but is determined by a separate scale where only banking institutions are compared.
According to "Credit Rating" rating of bank deposit characterizes the independent opinion of "Credit Rating" about the possibility of the bank timely and in full to fulfill its obligations in returning of the bank’s deposits over the next 12 months.
Ratings of banks deposits allows potential investors to carry out selection of the most reliable banks and decide whether to place the funds in the bank, or in the case of the expiration of the deposit agreement - whether it should be extended.