Analytical Credit Rating Agency (ACRA) has assigned a AAA(RU) rating to DeltaCredit, a stable outlook.
The credit rating is determined by the very high likelihood of extraordinary support from its shareholder (Rosbank). The bank is marked by moderately high assessment of its credibility which is bolstered by adequate business and risk profiles, a substantial capital cushion and strong liquidity positions.
The lender's moderately strong positions in the mortgage market (accounted for 3.1% of the banking sector's mortgage credit in 2016 – the bank ranked third) are maintained by both mortgage credit the bank grants itself and a developed system of marketing mortgage product through a network of partner banks and Rosbank's offices. DeltaCredit's corporate governance and strategic planning system is assessed above average in the context of the Russian banking system. At the same time, its focus on mortgage lending results in poor diversification of operating income, thus limiting business profile assessment.
The high main capital adequacy ratio under international (the Tier 1 capital adequacy ratio stood at 23.3% as of end 2016) and Russian standards (as of early March 2016 N1.2 was 10.1%) allows the bank to overcome a 3-4% increase in the cost of credit risk. DeltaCredit's own capabilities of generating new capital are assessed as strong.
As of end 2016 61% of the bank's liabilities fell to issued debt securities (exchange-traded bonds and mortgage-backed securities), and 31% to the funds held by Rosbank and banking group Societe Generale. The bulk of issued bonds (around 70%) and funds falling to related parties (nearly 90%) have a maturity beyond 2018, allowing the bank to reduce possible volatility of these sources.
