LGT Bank in Liechtenstein Aktiengesellschaft Ltd.LONDON--(BUSINESS WIRE)--S&P's CreditWire 10/29/98--Standard and Poor's today affirmed its double-'A'-minus/'A-1' counterparty credit ratings on LGT Bank in Liechtenstein Aktiengesellschaft (Ltd.) (LGT LGT Light LGT Lateral Gene Transfer LGT Lifeguard Training LGT Locomotiv GT (Hungarian rock band) LGT Lattice Gauge Theory (physics) LGT Liechtenstein Global Trust (bank) BIL BIL Brother-In-Law BIL Billion BIL Bilateral BIL Band Interleaved by Line BIL Basic Impulse Level (electrical power switches) BIL Basic Insulation Level (IEC) ) following the announcement of the buyback of their Bearer Participation Certificates by the Prince of Liechtenstein Foundation The Prince of Liechtenstein Foundation is a portfolio of private companies owned by the Princely Family of Liechtenstein. It is essentially a cap for a multitude of investments, such as the Liechtenstein Global Trust (LGT), the Hofkellerei wineries, Rice Tec (POLF POLF Points of Light Foundation ). The outlook is stable. The ratings on LGT BIL reflect its strong capitalization, despite the reduction in its capital, and a solid franchise based on its specialization in international private banking. The rating is further supported by the bank's consistent profitability, minimal credit losses, and excellent reputation with high net worth individuals. Although capital levels will fall by about Swiss franc (SFr) 80 million ($59 million) out of total shareholder funds of SFr747 million at year-end 1997, as a result of the buyback of the Bearer Participation Certificates, Standard and Poor's Noun 1. Standard and Poor's - a broadly based stock market index Standard and Poor's Index regards the strong internal capital generation as a positive factor in LGT BIL retaining its excellent level of capitalization. The shares are being bought by the POLF, which holds 99.9% of the voting rights Voting rights The right to vote on matters that are put to a vote of security holders. For example the right to vote for directors. voting rights The type of voting and the amount of control held by the owners of a class of stock. of the Liechtenstein Global Trust (LGT). LGT itself holds 100% of LGT BIL. The foundation represents the interests of the Liechtenstein royal family. The capital levels of LGT have been strengthened by the capital gain from the sale of LGT BIL's asset-management division earlier in 1998. The cash fund generated from the sale is being used to create a separate subsidiary of LGT called LGT Capital Management, which will act as investment fund. LGT BIL will remain a completely separate entity concentrating on international private banking. LGT BIL has consistently achieved a good level of profitability. Return on assets Return on assets (ROA) Indicator of profitability. Determined by dividing net income for the past 12 months by total average assets. Result is shown as a percentage. ROA can be decomposed into return on sales (net income/sales) multiplied by asset utilization (sales/assets). stood at 1.41% at year-end 1997. Furthermore, the bank benefits from exceptionally low loan losses. OUTLOOK: STABLE LGT BIL will continue to benefit from the unique features of Liechtenstein as an offshore financial center, its dedicated client orientation, its excellent reputation with high net worth individuals, and its stable management team, Standard & Poor's said.---CreditWire |
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