- Prepared research reports on Russian and Ukrainian banking systems.
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- Advised Keefe Bruyette & Woods Ltd investment banking team on developing relationships with banks in CEE and CIS countries.
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- Prepared and presented an alternative analysis to an international rating agency in response to its rating report of a bank in South-Eastern Europe. The analysis used detailed bank data to address specific negative points and opinions in the rating report.
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- Prepared and presented a formal appeal against an existing rating for a substantial privately-owned bank in South-Eastern Europe. This required a comprehensive analysis of in-house, market and external data. The main issues addressed included:
- The effect of rapid loan growth rates (from a low base) on loan quality.
- Loan and funding concentrations: how to measure them and when are they no longer a significant weakness. The use of the Herfindahl Concentration Index as a more accurate measure.
- The effectiveness of subordinated loans in enhancing capital adequacy.
- The level of economic risk for banks in a country: when a rating agency's assessment differs from that of the IMF.
- Management's ability to manage continuing rapid growth and rising competition.
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- Assessed whether a medium-sized privately-owned bank in South-Eastern Europe had a sound basis to appeal against an existing rating. This involved:
- An independent financial analysis of the bank.
- An analysis of the agency's rating reports of the past three years to assess how its opinions have evolved, and how they compared against our opinions.
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- Assessment of whether a large bank in the Baltics has grounds for appealing for higher ratings. This involved:
- A detailed comparison of the rating agencies' evolving opinions against our independent analysis.
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- Advised a small Baltic bank on the steps needed to obtain an optimal first credit rating.
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- Prepared a "red flag" analysis for a recently privatised bank in South-Eastern Europe.
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- In close cooperation with management, designed a long term planning model for a medium-sized privately-owned bank.
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