Rating agency RAEX (Expert RA) has affirmed its creditworthiness rating of A (the high level of creditworthiness) on TEMBR-Bank. The rating sublevel was increased from the first to the second. The rating carries a stable outlook, which means the strong likelihood of the bank's rating remaining unchanged in the medium term.
Key factors producing a positive impact on the bank's rating include well-balanced assets and liabilities in terms of duration in the short term and high coverage of the credit portfolio. Furthermore, the agency welcomes high coverage of operating expenses by net interest and commission income, the high portion of securities that are on the Bank of Russia's Lombard List, in the bank's aggregate securities portfolio and moderately low currency risks that are accepted by the bank.
"The upgrade of the rating sublevel is primarily attributable to the bank's insufficiently conservative reserve policy, which in combination with current concentration of active operations on companies associated with high credit risks is making the bank's profit and capital substantially sensitive to poorer payment discipline and the financial standing of separate borrowers," RAEX director for banking ratings Stanislav Volkov commented.
In addition, the bank's rating was affected by moderate adequacy of equity and high NPLs of businesses and individual entrepreneurs.
