Russian rating agency RAEX (Expert RA) has affirmed Bank Novopokrovsky's creditworthiness rating at A (high creditworthiness), and reduced the bank's rating sublevel from 1 to 2. The rating carries a stable outlook, which means the strong likelihood of the bank's rating remaining unchanged in the medium term.
As before, the bank's moderately high support by its beneficial owners continues to produce a primary positive effect on the rating. Moreover, the agency pointed to acceptable loan coverage and the high portion of securities that are on the Bank of Russia's Lombard List. The high quality of the off-balance debt portfolio also stands out among positive factors.
The bank's rating is constrained by high concentration of active operations on businesses associated with the high credit risk and poor diversification of funds drawn in terms of big creditors and creditor groups. "The reduction of the rating sublevel was primarily driven by the unstable core capital adequacy ratio as the ratio dropped below 6.6% in the first half of 2015. This level is close to the minimum threshold and makes the bank more sensitive to asset impairment," RAEX director for banking ratings Stanislav Volkov noted. credit portfolio deteriorating in terms of quality in the mid-term outlook," RAEX director for banking ratings Stanislav Volkov commented.
