Russian rating agency RAEX (Expert RA) has downgraded its creditworthiness rating on Bank Intercredit to B++ (satisfactory creditworthiness). The rating outlook was set as negative, which means the strong likelihood of a rating downgrade in the medium term.
Previously the bank was rated at A (Sublevel 3), with a stable outlook. The bank's rating was downgraded as the portion of its highly liquid assets declined.
Moreover, the agency pointed to an increase in the portion of 3rd quality category loans, a rise in restructured loans and claims under other operations, and also an increase in loans granted by banks that have no creditworthiness ratings, which was reflected in the negative rating outlook. The agency paid attention to the fact that the coverage ratio of loans issued to businesses, individual entrepreneurs and households tends to fall.
The lender's rating is still backed by high capital adequacy, acceptable rates of return, and also the acceptable of the minimum currency risk.
