OREANDA-NEWS. On 02 June 2009 was announced, that RusRating assigned credit ratings of BBB (stable outlook) to MDM-Bank (Moscow) and URSA Bank (Novosibirsk). According to RusRating senior analyst Victoria Belozerova, the BBB rating reflects the risks associated with the post-merger bank.

Positive factors include federal government backing in the form of credit resources; financially-strong majority shareholders; healthy liquidity reserves; and solid, well-developed market positions in several areas.

Potentially destabilising factors include growth in credit risks in response to crisis conditions and high operational risks arising from the merger process.

MDM-Bank is a major private-sector bank controlled by leading Russian businessman Sergei Popov; minority stakes are held by a range of private and institutional and non-resident investors, including the IFC, Olivant Limited and Martin Andersson. Market positions in corporate and investment banking are well-developed and the Bank is also a notable player in retail and SME loans and services. Preparations for a merger with URSA Bank are currently under way.

URSA is a large private-sector bank controlled by Chairman of the Board Igor Kim; minority stakes are held by major international financial institutions (the EBRD and DEG) and Russian investors and some shares circulate on the open market. The Bank is an established player in several market segments, including loans and other services for larger and mid-sized companies. A national leader in retail, it operates a reasonably extensive branch network and is expanding its presence in small-business loans. Preparations for a merger with MDM-Bank are currently under way.