OREANDA-NEWS. The cut in rating from “A+” to “A” on the international scale reflects a downgrade in assessed corporate governance resulting from apparent lapses in internal control and possible reputation issues following the arrest of the Bank’s former Management Chairman.

The rating is based on membership in a major international finance group, a solid and leading presence in virtually all segments of the banking market at the national level, and a high degree of financial flexibility. Country risk is a constraining factor.

Rosbank is Russia’s third-largest private-sector credit organisation (tenth including state-owned players) and a universal commercial bank in which the Societe Generale group holds a stake of more than 80%; other SocGen assets in Russia have been consolidated on its balance sheet. Vladimir Potanin – a prominent Russian businessman, principal owner of the InterRos group and at one time Rosbank’s principal shareholder – retains a minority stake, as does state-owned VTB. Rosbank operates one of the country’s largest branch networks and is an established player in virtually all market segments at the national level. Rusfinansbank and DeltaCredit Bank are wholly-owned subsidiaries.

Capital is sufficient and its quality is rated favourably. The diversification and stability of external funding are likewise rated favourably and the role of InterRos group resources has declined noticeably. Asset quality appears satisfactory; client loans predominate. Earnings performance is healthy. Liquidity is judged sufficient. Risk sensitivity is moderate.