OREANDA-NEWS. National Rating Agency has affirmed its national scale 'AA-' credit rating on Pervy Objedinenny Bank OJSC (Pervobank).

The rating is underpinned by the bank's highly supportive key shareholder, geographically diversified business, ability to maintain adequate loan quality in a challenging operating environment and its stable customer base. Additionally, Pervobank has built a public credit history and has a wide range of funding sources available.

The rating is constrained by the bank's highly volatile deposits and the net interest margin reduction in late 2014 and Q1 2015, that has given to losses. We also note the persistent single-name concentration of the bank's loan book.