Expert RA rating agency assigns ruА- credit rating to CREDIT BANK OF MOSCOW, stable outlook
4 May 2018 — Expert RA rating agency («Expert RA») has assigned to CREDIT BANK OF MOSCOW (the «Bank») the national scale credit rating ruA-, stable outlook. Positive rating assessment factors noted by the agency include a moderately strong business profile, appropriate capital adequacy level, high ability to generate capital and satisfactory liquidity level. In addition, Expert RA analysts emphasised such a supporting factor as a high probability of financial and administrative support to the Bank by federal authorities should it be required, as the Bank has the status of Systemically Important Financial Institution.
Expert RA noted positive trends in a number of the Bank’s key performance indicators: the N1.2 ratio-based loss absorption buffer increased from 01.04.17 to 01.04.18 from 3.0% to 8.5% of credit risk-bearing assets and off-balance sheet liabilities; the after-tax RAS income-based ROE grew from 7% for 01.04.16-01.04.17 to 9% for 01.04.17-01.04.18.
Reviewing the capital adequacy, Expert RA commented: «A stronger capital position was due to comprehensive efforts including an increase in the base capital in October last year and disposal of some non-profitable assets in 2017-2018».
The agency evaluated highly the Bank’s international capital market transactions closed in 2017-2018. The Bank became the leader among Russian financial institutions in terms of the size and number of international borrowings.
Liquidity-wise, the agency underlines that the Bank complies with the short-term liquidity ratio with a wide margin and has access to a broad range of additional liquidity sources.
After Expert RA’s rating action, the Bank is now rated by two rating agencies accredited by the Bank of Russia: «A-» by Expert RA and «A», stable outlook by ACRA. In addition, the Bank has high credit ratings from three international rating agencies: «Ba3» with a stable outlook by Moody’s; «BB-» with a stable outlook by Fitch; «ВВ-» with a stable outlook by S&P.