OREANDA-NEWS. National Rating Agency has affirmed its ‘A-’ national scale credit rating on SIAB OJSC (OAO ‘SIAB’) and retained the rating outlook as negative. Revision of the rating can be made following the results of the bank's performance in 2015, or earlier in the case of any significant reasons for doing so. The ‘BBB+’ national scale credit rating had been originally assigned in April 2009. In May 2011, the credit rating was raised to ‘A-’ and subsequently affirmed at this level. The last rating action took place on August 14, 2014, when the credit rating was affirmed at ‘A-’ with a negative outlook.

The rating is constrained by preservation of the large amount of arrears on the loan portfolio, while having a decline in lending activity, which prevents the portfolio from being assessed as ‘good’. Among non-financial negative factors, the Agency highlights leaving of one of the company's owners, which reduces the ability of the shareholders to support the bank's capital stability. On the other hand, it should be noted that the related change in the development strategy, namely leaving off high-risk retail lending, should have a positive impact on the bank's financial condition.

Among positive factors supporting the current rating, the Agency notes the sufficient liquidity, which allows the bank to pay off its obligations on time and in full, the high technological potential, and the adequate level of corporate management.

NRA’s analytical products, including ratings and the contents of this press release, are statements of NRA’s independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.

While NRA has obtained information from sources it believes to be reliable, NRA does not guarantee that this information is perfectly correct, complete and accurate, as it does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.