OREANDA-NEWS. RusRating has removed OAO IBSP (St. Petersburg) from its watch list. The bank’s credit rating is unchanged at "BBB-" on the national scale and "BB-" on the international scale, in both cases with a stable outlook.

In response to improved capital adequacy measures RusRating has removed IBSP from its watch list, leaving its rating and rating outlook at the previous level. At the same time the agency notes a long-term downward trend in the volume of client loans, a growing percentage of restructured loans, a declining interest margin, and the above-average contribution of variable factors to current earnings. If these negative trends accelerate the bank’s credit rating may be cut.

The rating is based on the backing of IBSP’s owner, including his political connections and lobbying capacity; an established market presence in north-west Russia; a stable corporate client base; and a now-satisfactory capital base.

Constraining factors include above-average exposure to large-scale credit risks; a funding base that is only modestly diversified by individual client and to a significant extent dependent on Bazhanov’s business ties; and elevated risk sensitivity.