OREANDA-NEWS. RusRating has changed the outlook on OAO Gazenergobank's credit rating from "positive" to "stable". The rating itself is unchanged at "BBB+" on the national scale and "BB" on the international scale.

The change in outlook reflects slowing growth in response to a broader weakening of market conditions in the banking sector.

The rating itself is based on the support of ProbusinessBank and a moderately well-developed market presence at the regional level, plus a funding base and current liquidity independent of the domestic interbank market.

Constraining factors include the limited diversification of both asset and funding side operations and refinancing options dependent on the stability of the LIFE group as a whole.

About the Bank

Gazenergobank is a private-sector regional bank that ranks among the top three hundred in Russia by assets. The largest local player in Kaluga region, it is a member of the LIFE group headed by ProbusinessBank, one of Russia's top one hundred credit organisations; the group has loan offices and other service locations in several regions of the country and includes seven subsidiary banks plus Life Factoring and the real estate developer Probusiness-Development. Gazenergobank's own market positions are growing and show healthy scope for further development. Operations remain focused on the retail segment but its corporate business is gradually expanding, with an emphasis on services for small and mid-sized regional enterprises.

Capital is sufficient and its quality is rated favourably. External liabilities are judged solid; risks to stability arising from dependence on a single class of funding are offset by access to LIFE group resources and a growing market presence. Asset quality is rated satisfactory. Earnings performance is healthy. Overall risk sensitivity is moderate. Current liquidity is sufficient.