Russian rating agency RAEX (Expert RA) has affirmed its creditworthiness rating of B++ (satisfactory level of creditworthiness) on Eurasian Investment Bank, with a stable outlook, the agency's press service reported.
The bank's rating is positively influenced by high capital adequacy ratios (as of October 1, 2015 N1.0 was equal to 22.2%; N1.1 equaled 18%; and N1.2 stood at 18%), and also by low NPLs on the bank's balance sheet (as of October 1, 2015 the portion of NPLs in the aggregate credit portfolio equaled 2.2%).
The agency welcomes the bank's well-balanced assets and liabilities in terms of duration in the short-term horizon (as of October 1, 2015 N2 was equal to 90.6%, and N3 equaled 99.9%), and also high coverage of the credit portfolio (as of October 1, 2015 the credit portfolio's coverage, excluding collateral of securities, sureties and guarantees, was 135.2%, and 266.8% taking collateral into account).
Analysts believe that the bank's rating is pressured by losses (from October 1, 2014 through October 1, 2015 ROE equaled -11.6%, while ROA was -3.1%) and its low absolute capital (Rub 325 mln as of October 1, 2015). The bank's rating is also adversely affected by high concentration of active operations on companies associated with the high credit risk, RAEX added.
