OREANDA-NEWS. September 4, 2012. Standard & Poor's Ratings Services raised its long- and short-term counterparty credit ratings on Gazprombank to 'BBB-/A-3' from'BB+/B'. The outlook is stable. At the same time, the Russia national scale rating was raised to 'ruAAA' from 'ruAA+'.

The upgrade reflects the agency’s view that Gazprombank's risk profile has improved thanks to management's actions to curb the proportion of non core banking assets.

In its report S&P, among other factors, acknowledges the Bank’s structurally stronger loan-loss experience and nonperforming-loan dynamics than the sector average; the above-sector-average diversification of its corporate loan portfolio; and the improving quality of the revenue base, with a decreasing share of non core items.

S&P considers Gazprombank to be a government-related entity with a "high" likelihood of timely and sufficient extraordinary government support and gives the Bank a two-notch uplift above its stand-alone credit profile of “bb”.

The stable outlook reflects the agency’s expectation that Gazprombank's reduced risk profile, its good corporate franchise, and resilient financial profile will likely allow the Bank to withstand the tougher economic environment the agency foresees for the world in 2012 and 2013, including in Russia.

“S&P’s decision to upgrade our rating to investment grade proves again that the Bank’s business model and its risk management system facilitates sustainable profitable growth even in today’s economic environment. – commented O. Vaksman, CRO and Member of the Management Board of the Bank. – Two upgrades to the overall and stand-alone credit rating (without support factors), within the last 12 months, clearly demonstrate the Gazprombank’s success in further diversifying its business model, while carefully managing its risks and capital”.