Russian rating agency Expert RA (RAEX) has affirmed Finprombank's creditworthiness rating at A (high creditworthiness, Sublevel 2). The rating carries a stable outlook.
Main factors that produce a positive impact on the rating were the good balance between assets and liabilities by duration in the short-term outlook, the high credit portfolio quality and developed practice of managing market risks.
Primary factors that adversely influence the rating were the insufficiently conservative policy of managing capital adequacy, and also low profitability. Furthermore, the rating was depressed by the risks associated with rapid expansion of the credit portfolio.
"However, we note that to a certain extent the bank's assets grew on the back of loans secured by margin deposits and the bank's own promissory notes, which reduces accepted risks," commented Stanislav Volkov, director of banking ratings at Expert RA.