NRA: Khanty-Mansiysk Bank Otkritie PJSC's Credit Rating Affirmed at ‘AAA’
OREANDA-NEWS. National Rating Agency has affirmed its ‘AAA’ national scale credit rating on Khanty-Mansiysk Bank Otkritie PJSC (PAO ‘Khanty-Mansiysk Bank Otkritie’). The ‘AAA’ credit ratings were assigned to KHANTY-MANSIYSK BANK OJSC and Otkritie Bank OJSC in June 2014. On November 20, 2014, the ratings were annulled due to the merger of Otkritie Bank OJSC and Novosibirsk Municipal Bank OJSC into KHANTY-MANSIYSK BANK OJSC. On the same day the ‘AAA’ credit rating was assigned to Khanty-Mansiysk Bank Otkritie PJSC (hereinafter – the Bank).
The rating is underpinned by the Bank's affiliation with the largest private-sector banking group in Russia, significant geographical coverage, and strong ranking position. As for the Bank's financial condition, the Agency notes high liquidity ratio, growth of the pre-provision operating profit, sufficiently diversified assets structure, and adequate level of capital stability. The Agency also praises the Bank's efforts aimed at creation of loan loss provision. Despite the significant deterioration of some indicators, the current rating has been affirmed due to the fact that the Bank is a member of Otkritie Banking Group, the main company in which is rated at ‘AAA’.
The macroeconomic environment, which causes a deterioration in the financial performance of the whole Russian banking system and in assets quality of Russian credit institutions, has some negative influence on the activity of Khanty-Mansiysk Bank Otkritie PJSC as well. The rating is constrained by decline in the business scale, lowering quality of the loan portfolio, and loss-making activities given the necessity of creating reserves. However, NRA does not expect an intense increase in arrears and a significant deterioration of other financial indicators in the future. Still, the Agency will be regularly monitoring the quality of the loan portfolio and the Bank's overall financial condition.