Rating agency Expert RA has assigned a B++ creditworthiness rating (acceptable creditworthiness) to Regiobank. As the rating agency said in a press release, the main factor producing a positive impact on the bank’s creditworthiness is a broadly diversified resource base in terms of clients. The portion of 10 largest depositors in the bank’s aggregate liabilities is extremely low, equaling 6.3% as of October 1, 2008. At the same time, this indicator tends to go down. Among positive factors the agency also takes into account the high level of assets collateralized for loans, the modest amount of loans overdue, extensive experience of operations on the market and strong profitability ratios.
Imbalance in Regiobank’s assets and liabilities in terms of duration was recognized as the crucial factor limiting the lender’s creditworthiness. The portion of long-term resources is fairly low in the bank’s liabilities. The lender’s rating was also adversely impacted by the high weighting of three largest sectors in the corporate client portfolio, the insufficient structure of its equity capital and the limited geographical scope of operations.
