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Fitch Ratings has affirmed Credit Agricole Bank’s status as one of the highest rated local issuers

20 February 2020

On February 12th 2020 Fitch Ratings has affirmed the Long-Term Foreign Currency Issuer Default Ratings (IDRs) of Credit Agricole Bank at 'B' and the Long-Term Local-Currency IDRs at 'B+' with Positive Outlook. The National Long-Term Ratings was affirmed as 'AAA (ukr)' with Stable Outlook.

“Fitch Rating again proved Credit Agricole Bank’s status as one of the highest rated issuers in Ukraine. Bank’s positive Net result increasing year-by-year is a confirmation of efficient management and bank’s strategy efficiency. Strong capital position, successful NPL management and prudent risk policy ensure bank’s financial stability”, - Giorgio Sopranzi, Member of the Management Board, Financial Director of Credit Agricole Bank, commented.

The ratings of Credit Agricole Bank are as follows:  

  • Long-Term Foreign-Currency IDR: affirmed at 'B'; Outlook Positive
  • Long-Term Local-Currency IDR: affirmed at 'B+'; Outlook Stable
  • Short-Term Foreign- and Local- Currency IDRs: affirmed at 'B'
  • National Long-Term Rating: affirmed at 'AAA (ukr)'
  • Viability Rating: affirmed at 'b'
  • Support Rating: affirmed at '4'

Fitch has further affirmed Credit Agricole Bank VR at 'b' due to limited changes in the bank's credit profile since the last review. Credit Agricole Bank VR of 'b' captures its strong credit profile in the local context, healthy performance through the cycle, low share of impaired exposures and sound capitalization. At the same time, the rating remains constrained by the potential volatility of the high-risk Ukrainian operating environment.

Credit Agricole Bank reported strong bottom line results in 9M19 (annualized ROAE of 40%), supported by solid margins, strong commission income and good operating efficiency. Credit Agricole Bank remained profitable through the cycle and it is expected low cost of risk and renewed lending growth to help bank maintain ROAE around current level.

The Fitch Core Capital (FCC) was 16% of RWA at Credit Agricole Bank at end-3Q19. Capitalization was further supported by limited incremental provisioning risks, reasonable growth plans and moderate dividend pay-outs.

Funding and liquidity profiles of the bank benefit from stability of deposits, healthy liquidity positions and lack of third-party wholesale borrowings. Highly liquid assets, net of wholesale repayment within the next 12 months, covered a reasonable 23% of deposits at Credit Agricole Bank.

RATING SENSITIVITIES

The IDRs and SRs could be upgraded if Ukraine's sovereign ratings are upgraded and the Country Ceiling is revised upwards. The bank’s VRs could come under pressure in case of renewed asset quality deterioration, leading to weaker performance and capital position without support being provided by shareholders.

Full Fitch press release please find by link https://www.fitchratings.com/site/pr/10110615

About Fitch Ratings

Fitch Ratings is an international credit rating agency based out of New York City and London. It is one of the three nationally recognized statistical rating organizations (NRSRO) designated by the U.S. Securities and Exchange Commission in 1975. Fitch offers sovereign credit ratings that describe each nation’s ability to meet its debt obligations. Sovereign credit ratings are available to investors to help give them insight into the level of risk associated with investing in a particular country.  Investors use the company's Fitch ratings as a guide as to which investments will not default and subsequently yield a solid return. Fitch bases the ratings on factors, such as what kind of debt a company holds and how sensitive it is to systemic changes like interest rates.

About Credit Agricole:

JSC «Credit Agricole Bank» is a modern universal bank owned by the leading financial group in Europe – Credit Agricole Group (France). The Group is a major partner of the French economy and one of the largest banking groups in Europe. It is a leading retail bank in Europe, having the largest portfolio of assets under management, being first in the field of ban insurance and third - in project financing in Europe. Credit Agricole has been operating in the financial market of Ukraine since 1993 and renders the entire range of banking services to private individuals, including premium-clients, and business. The Bank pays special attention to cooperation with agricultural enterprises. Reliability and business reputation of Credit Agricole in Ukraine is confirmed by the highest possible Fitch ratings, leading positions in bank sustainability, bank deposit reliability and bank profitability rankings, as well as by 280 000 active private and 17 000 corporate customers, including international corporations, large Ukrainian companies and representatives of small and medium business. Credit Agricole Bank is a socially responsible bank that confirms its status by the large number of projects implemented under the corporate social responsibility program «We Care!».

Contacts:

Viktoriia Torianyk, Head of PR and internal communications division of Credit Agricole Bank.

E-mail: Viktoriia.TORIANYK@credit-agricole.ua

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