The National Rating Agency (NRA) has affirmed Khanty-Mansiysk Otkritie Bank's national scale creditworthiness rating of AAA.
As the NRA noted in a press release, the bank's rating is positively influenced by "being part of a major private banking group in Russia, wide coverage of operations and strong ranking positions".
As for the bank's financial standing, the agency pointed to such positive factors as high liquidity ratios, improved rates of return before provisions, quite a diversified breakdown of liabilities, modest, but sustainable capital stability. The agency also positively assesses the bank's efforts to form loan loss provisions.
At the same time, NRA analysts stated that the macroeconomic conditions, which worsen financial indicators of the Russian banking system as a whole and dampen asset quality at Russian lending institutions, have also produced a certain effect on the performance of Khanty-Mansiysk Otkritie Bank. Among factors that weigh on the rating the agency highlighted a decline in the scope of business, the deteriorating credit portfolio quality and losses urging the bank to compile provisions. The NRA expects no rapid growth of the bank's NPLs or substantial deterioration of other financial indicators in the future, but it will monitor on a regular basis both the bank's credit portfolio quality and its financial statement standing as a whole, the agency noted.
The affirmation of the bank's current rating, despite a contraction in a number of indicators, was driven by the fact that Khanty-Mansiysk Otkritie Bank is part of banking group Otkritie, the parent company of which was rated at AAA, the NRA concluded.
