Russian rating agency RAEX (Expert RA) has cut its creditworthiness rating on Ancor Bank to B+, which corresponds to the moderate level of creditworthiness, and maintained its developing rating outlook, which means the equal likelihood both of the rating being held at the current level and being revised over the medium term.
The rating remained under watch. The bank was previously rated at B++ (the satisfactory level of creditworthiness).
The rating revision was primarily driven by substantial deterioration of the credit portfolio quality, RAEX said in a press release. Furthermore, the analysts pointed to negative profitability indicators (from July 1, 2014 through July 1, 2015 the bank's ROE equaled -34.9%, and ROA was -7.4%). "As the bank's operations generate no profit (excluding assistance of its shareholders) the fulfillment of mandatory capital adequacy ratios depends, to a large extent, on the possibilities of its owners to support the bank, which is reflected in the developing rating outlook," the agency noted.
