Russian rating agency RAEX (Expert RA) has confirmed its creditworthiness rating of A (high level of creditworthiness, Sublevel 3) on Isbank. The bank's rating was removed from rating watch, and the rating outlook was cut from developing to negative.
The downgrade of the rating outlook was driven, above all, by the reduction in the scope of business and an outflow of funds drawn from businesses, individual entrepreneurs and households, RAEX noted. In the fourth quarter of 2015 the money attracted from clients declined by 39%. The agency also negatively assesses the bank's further business prospects as an outflow of drawn funds may continue.
Among positive factors, the agency highlighted high capital adequacy ratios of the bank (as of January 1, 2016 N1.0 stood at 39.2%) and well-balanced assets and liabilities in the short-term horizon (as of the balance sheet date N2 equaled 80.6%, N3 was equal to 114.3%, and highly liquid assets accounted for 16.6% of gross assets).