Russian rating agency RAEX (Expert RA) has cut its creditworthiness rating on Chuvashcreditprombank to B+. Under the agency's rating scale, this rating corresponds to "the modest level of creditworthiness".
The negative rating outlook was left unchanged, which means the strong likelihood of the rating being downgraded over the medium term. Previously the bank was rated at A (the high level of creditworthiness).
RAEX attributed the rating action, above all, to the growing risk of the bank violating the N1.0 ratio (10.42% as of July 1) due to the sharp deterioration of asset quality. Furthermore, the agency assesses as extremely non-conservative the bank's provisions policy and the one related to the compliance with the Federal Law "On Counteracting Legalization (Laundering) of Criminal Income and the Financing of Terrorist Acts".
