Hearts Broken?

It's a deal!

Heart of Midlothian FC is owned by Vladamir Romanov, who owns the bank Ukio Bankas of Lithuania. Hearts staff have not been paid this week. Here is the latest financial report on Ukio Bankas.

VILNIUS – Rating agency Standard & Poor’s said on August 26th that it had revised its outlook on Lithuanian AB Ukio Bankas to negative from stable.

At the same time, the ‘BB’ long-term ratings  and ‘B’ short-term ratings on the bank were affirmed.

The outlook revision on Ukio reflects what S&P believes is “the bank’s  heightened credit risks arising from uncertain economic prospects in Lithuania where the bank operates.”

“In addition to the deteriorating economic conditions, we believe that  Ukio’s credit risks have increased because the bank has experienced very high  loan growth in the past 12 months in an untested operating environment that is  exposed to macroeconomic overheating,” said Standard & Poor’s credit analyst
Miguel Pintado.

“Standard & Poor’s considers that Ukio is exposed to high credit risk through its loan portfolio growth of over 100% in the last 18 months. This is well above the overall Lithuanian market lending growth rate, and most of the loans are to the riskier small and midsize enterprises and  retail leasing sectors.”

Although asset quality indicators remain at “relatively comfortable” levels, the first six months of 2008 have already seen a deterioration, with nonperforming loans increasing, S&P noted.

Standard & Poor’s considers that Ukio is likely to face increased  pressure on its asset quality as the economic conditions in Lithuania  deteriorate. The outlook also factors in the expectation that Ukio will be  able to maintain its relatively good financial performance and garnering of  market shares in core business lines, while maintaining capital levels.

“The outlook could revert to stable if our concerns over the operating environment abate and the bank’s asset quality proves resilient while it continues to deliver sustained profitability and strengthen its commercial and
financial position. Conversely, a weakening financial profile or operating environment, contributing to higher credit or market risks, could put downward pressure on the ratings,” S&P said.

Here IS the Hardworkingfamily!

Hardworking Family (hard work not pictured)

This picture appears in its original context here on a page on Labour’s website entitled ‘supporting hardworking families’. Indeed it looks as if this family needs supporting. Despite Labour’s 11 year period in government, the carpet and decor look as if they were purchased on the shopping expedition when dad (left) also bought a new 8 track player for his mark 2 Cortina. One also has to sympathise with four people sharing a brown dralon covered armchair.

New Labour – supporting patterned wallpaper (and net curtains)