Moodys Affirmed Long-Term Credit Rating of Bank Vozrozhdenie
OREANDA-NEWS. October 24, 2008. Moody’s Investors Service announced the revised credit opinion on Bank Vozrozhdenie. The foreign/local currency deposit ratings of Bank Vozrozhdenie were affirmed on the level “Ba3” with “Stable” outlook. Financial strength rating retains on the level “D-“, reported the press-centre of Bank Vozrozhdenie.
“Affirmation of Bank Vozrozhdenie international ratings has once again confirmed soundness of our strategy focused on operations with clients, — said Andrey Shalimov, Head of Treasury, — we have reliable sources of funding as well as stable and diversified funding base from internal financial markets.
During 9 months of the current year the Bank has doubled the amount of funds attracted from corporate clients that additionally strengthened our funding base. The liquidity cushion accumulated from the beginning of 2008 allows the bank to continue servicing our clients in a regular manner. International credit ratings also gives us an access to funding from the Bank of Russia and the Ministry of Finance”, — added Andrey Shalimov.
The rating is supported by the ongoing strengthening of the bank’s franchise in SME and retail segments, its relatively conservative risk profile compared to similarly rated Russian peers and by its satisfactory financial fundamentals. At the same time, the rating is constrained by the operating and regulatory environment in Russia, by the relative lack of debt and capital markets funding options currently available to V-bank (similarly to other Russian banks) and by still developing risk management practices of the bank.
Among Bank Vozrozhdenie credit strengths Moody’s has mentioned relatively good geographical diversification of business, solid fee-generating capacity, good profitability, sound customer funding base supported by a high proportion of retail deposits.