Analytical Credit Rating Agency (ACRA) has assigned an A(RU) rating, a stable outlook to Russian National Commercial Bank. The relevant press release was posted on the agency's website Tuesday.
The bank's credit rating is determined by its stable, but concentrated business profile, its strong capital adequacy position, its weak risk profile and adequate assessment of liquidity and funding, analysts noted. Furthermore, factors behind the rating are the moderate degree of the bank's systemical importance for the Russian economy and the state's very strong influence on the bank's creditworthiness, according to ACRA methodology.
Among key factors for the bank's rating the agency named a high probability of the bank gaining extraordinary support from state authorities. RNCB is a dominating participant in the strategically important market (the Crimean Peninsula).
The lender's business profile risks are stipulated by its regional focus, and also uncertainty surrounding the takeover of Kraiinvestbank.
RNCB's risk profile is assessed as weak owing to the possibility of a sharp increase in bad loan claims in the credit portfolio following Kraiinvestbank's takeover.Meanwhile, the agency noted that the bank's strong capital adequacy ratios by both international standards and regulatory requirements create a solid buffer for the Crimean bank to absorb potential losses.