Russian rating agency RAEX (Expert RA) has cut Eurasian Bank's creditworthiness rating to B++ (satisfactory level of creditworthiness), but kept a stable outlook, RAEX's press service reported.
The bank's rating was revised downward due to losses (after-tax losses totaled Rub 136.4 mln in January — September 2015). The rising portion of loans of the 3rd, 4th and 5th categories in the bank's credit portfolio (from 17.6% as of January 1, 2015 to 27.3% as of October 1, 2015) amid an insufficiently conservative provision policy could lead to the additional formation of provisions and, as a consequence, higher losses.
"The rating is under additional pressure from volatility of funds provided by the biggest creditors (a net outflow of funds held by businesses and individual entrepreneurs in September 2015 was around 71%), which prevents the bank from steadily expanding its operation," RAEX noted.
Analysts think that high capital adequacy ratios (N1.0 was 53.9%, N1.2 equaled 54% as of November 1, 2015) and well-balanced assets and liabilities by duration in the short-term horizon (N2 was 151%, and N3 equaled 300% as of November 1, 2015) stand out among positive factors. Experts also pointed to high coverage of the credit portfolio (the credit portfolio's coverage ratio taking into account collateral of securities, sureties and guarantees was equal to 1,054.7%, and 576.9% excluding collateral, as of November 1, 2015).
