OREANDA-NEWS. December 16, 2011. International rating agency Standard & Poor`s has raised the long-term credit rating of MDM Bank from В+ to ВВ- with a “stable” outlook. At the same time, Standard & Poor`s assigned the Bank a ’ruAA-’ Russia national scale rating.

This rating action was performed in accordance with Standard & Poor’s revised bank criteria and reflects MDM Bank’s adequate capital and profitability ratios, sufficient liquid assets and the declining problem indebtedness in the Bank’s loan portfolio.

“We view MDM’s capital ratios as adequate. We expect them to continue to compare well with those of other rated domestic banks in the medium term. Satisfactory profitability is supported by a lower cost of funds, stabilized new provisioning, and improved operating efficiency,” stated in the rating agency’s press release.

Konstantin Rogov, the MDM Bank CFO, said of the upgrade:"The decision of Standard & Poor’s to upgrade MDM Bank’s credit rating testifies to the high reliability of our credit profile, our balanced and diversified assets and liabilities structure, as well as our studious risk management."

Sergey Timofeev, the MDM Bank CEO, added:"MDM Bank continues to follow its conservative business management model, which is conducive to sustainable improvement of the Bank’s credit portfolio quality. We are set for organic growth, and we are convinced that it is this consistent and sustainable business development that results in continuous progress, based on partnership with clients and the professionalism of the Bank’s personnel. The decision of Standard & Poor’s to raise MDM Bank’s credit rating reflects the correctness of the route we have chosen.".