Russian rating agency RAEX (Expert RA) has affirmed its creditworthiness rating of B++ (satisfactory level of creditworthiness) on Bank Nevastroyinvest, with a stable outlook, the agency's press service reported.
The rating is positively impacted by high capital adequacy ratios (as of November 1, 2015 N1.0 stood at 51.3%, N1.1 and N1.2 were equal to 50%) and its well-balanced assets and liabilities in the short-term horizon (N2 was 59.4%, N3 equaled 73.4%, and the portion of highly liquid assets was 19.1% as of November 1, 2015).
Meanwhile, the rating is adversely affected by the bank's weak competitive positions in the coverage area and modest rates of return (from October 1, 2014 2014 until October 1, 2015 ROE came in at 3.4%, while ROA stood at 1.4%) coupled with high operating costs (7.1% of average assets for the period from October 1, 2014 through October 1, 2015).
Experts believe that the rating is pressured by a disproportion in turnover on client accounts and the bank's assets (debit turnover on clients' settlement accounts accounted for 48% of the bank's assets in October 2015) and high concentration of active operations on companies associated with the high credit risk.
