OREANDA-NEWS. According to the agency, the rating increase reflects successful implementation of the first stage of a new development strategy adopted following the change in ownership.

The rating is based on favourable development prospects, a stable client base including larger firms, good technology and infrastructure, and healthy capital adequacy.

Constraining factors include market positions that are underdeveloped compared to those of higher-rated banks.

Expobank is a mid-sized (by assets) private-sector bank that in late 2011 was sold by Britain's Barclays Bank to Igor Kim and his partners. A universal financial institution, it offers a wide range of both corporate and retail services. Priorities include building long-term ties to corporate clients and the provision of premium personal banking services. The Bank is successfully implementing a new strategy adopted following the change in ownership.

Capital adequacy is healthy and provides good scope for growth; capital quality is rated favourably. External funding draws mainly on retail and corporate client resources; concentration by individual creditor is elevated but overall diversification has improved thanks to a bond issue. Asset quality is rated satisfactory, based mainly on analysis of client loans and the securities portfolio. Earnings are healthy. Sensitivity to financial risks is moderate. Liquidity risks appear modest based on the term structure of assets and liabilities.