Fitch upgrades long-term rating of CREDIT BANK OF MOSCOW to ‘B+’ from ‘B’
On 03 June 2010 international rating agency Fitch Ratings upgraded the Long-term Issuer Default Rating (IDR) of CREDIT BANK OF MOSCOW to ‘B+’ from ‘B’ and National Long-term rating to ‘A-(rus)’ from 'BBB-(rus)'. The Bank’s ratings have been removed from Rating Watch Evolving (RWE), and a Stable Outlook has been assigned. Other ratings were affirmed at the same level, i.e. Short-term IDR affirmed at ‘B’ and Individual Rating affirmed at ‘D’.
The rating agency points out high assets quality of the Bank, moderate share of non-performing and restructured loans which “compares favourably to larger banks in the sector”, adequate capital position and support from the owner of the Bank.
Fitch believes that asset quality metrics have been supported by close monitoring of borrowers' cash flows, the low level of construction exposure and expertise in retail trade lending, which is the major focus of the Bank's business.
Apart from positive performance of CREDIT BANK OF MOSCOW, Fitch explains that rating upgrade “reflects the strengthening of certain aspects of Russia's banking system infrastructure during the global financial crisis, most notably in respect of banks ability to access liquidity, but also in regard to the establishment of more orderly procedures for management of bank failures. Fitch expects these changes to materially reduce default risk for all significantly-sized Russian banks going forward.”
“Rating and outlook upgrade evidences the adequacy of the selected development strategy of the Bank, operational efficiency and strengthening reliability. We are pleased to see high estimation of our efforts by the agency”, - commented First Deputy Chairman of the Management Board Vladimir Chubar on the rating upgrade.
It is worth mentioning that CREDIT BANK OF MOSCOW is also rated by Moody's Investors Service as follows: Financial strength rating (FSR) ‘E+’, Long-term global local currency deposits rating ‘B1/NP’ and Long-term national scale credit rating ‘A2.ru’.