Fitch Upgrades Long-Term Rating of Credit Bank of Moscow
OREANDA-NEWS. June 25, 2012. Fitch Ratings upgraded CREDIT BANK OF MOSCOW’s Long-term Issuer Default Rating from ‘B+’ to ‘BB-’, Viability Rating from ‘b+’ to ‘bb-’, National Long-Term Rating from ‘A-(rus)’ to ‘A+(rus)’ and Senior unsecured debt from ‘B+’ to ‘BB-’. Other Bank’s ratings are affirmed: Short-term IDR at ‘B’ and Support Rating at '5'. The ratings outlook is stable.
Factors that positively influenced Bank’s assessment by the rating agency were healthy liquidity, supported by the relatively short-term loan book of reasonable quality, sound profitability driven by low impairment charges and good fee generation capacity as well as broadening of the Bank’s franchise in Moscow and Moscow region which led to improved access to better quality customers and allowed the Bank to achieve economies of scale. Fitch also expects that following the upcoming equity injections from two international financial institutions, the Bank’s corporate governance will improve. Among other factors that support its opinion, Fitch particularly emphasized the Bank’s strong cash collection service enabling CBM to cross-sell its products and to minimize its credit risks through monitoring of the clients’ cash flows.
“We are vastly pleased with the rating upgrade, which is especially prominent against jittery international financial markets. Strict compliance with the strategy outlined back in 2010, entailing uplift of the assets quality and profitability ratios as well as maintenance of other ratios evidencing quality of the Bank’s management on consistently high level, together with the rising appeal of the Bank for international investors were fairly estimated by the rating agency, - commented Chairman of the Management Board Vladimir Chubar. – The rating upgrade is undoubtedly a very important milestone for the Bank, which, coupled with acquisition of the capital stake by the international investors, will enable the Bank to reach a totally new level of further development.