International rating agency Moody’s Investors Service has assigned long-term local and foreign currency deposit ratings of B3, short-term local and foreign currency deposit ratings of Not Prime and BFSR of E+ to Bank Obrazovanie, which corresponds to the baseline credit assessment of b3. All the long-term ratings carry a stable outlook.
The bank was also assigned a long-term national scale deposit rating of Baa3.ru, information on the agency’s website showed.
As Moody’s noted in a press release, the bank’s ratings are restrained by modest capital adequacy, high concentration of the corporate credit portfolio on the largest borrowers, expected growth of bad loans and potential liquidity risks.
These factors are partly offset by the bank’s fairly diversified clientele and also expected cash injections on the part of the shareholders (up to Rub 800 mln into tier 1 capital in 2014—2015), which should improve the bank’s capital positions, and also by the modest amount of bad loans at the moment.
Moody’s also pointed out that the bank’s capital position is positively affected by the refusal from the previous strategy of aggressive asset growth.
