OREANDA-NEWS. According to the agency, the change in outlook from “stable” to “positive” reflects healthy growth in the Bank's business coupled with continuing moderate risk exposure and an improvement in key financial indicators.

The rating itself is based on dynamic growth under the Bank's new owners, a stable client base among larger firms 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; diversification has improved thanks to a bond issue and borrowing in the financial markets (including the use of Central Bank funds). Asset quality is rated satisfactory, based primarily on analysis of client loans and the securities portfolio. Earnings are healthy. Sensitivity to financial risks is moderate. Risks to liquidity appear modest given the term structure of assets and liabilities.