Russian rating agency RAEX (Expert RA) has affirmed Metcombank's creditworthiness at A+ (very high level of creditworthiness), with a stable outlook, the press service of RAEX reported.
"The rating is supported by high coverage of operating expenses by net interest income and net commission income (208.1% in 3Q 2015), the high proportion of securities, which are on the Bank of Russia's Lombard List, in the bank's aggregate portfolio and low concentration of active operations on businesses associated with the high credit risk (as of October 1, 2015 big credit risks to the assets, net of provisions, equaled 14%)", the agency noted.
Analysts believe that the bank's rating is adversely influenced by moderately low capital adequacy (N1.0 equaled 11.3% as of October 1, 2015). The bank's rating is under pressure from low rates of return (from October 1, 2014 until October 1, 2015 ROE was equal to 0.1%, while ROA equaled 0%), the moderate credit portfolio quality (as of October 1, 2015 NPLs accounted for 10.4% of the retail credit portfolio) and high concentration of borrowed funds on the biggest creditor, RAEX added.
