Russian rating agency RAEX (Expert RA) has lowered its creditworthiness rating on RFI Bank to B++ (satisfactory level of creditworthiness). The stable outlook was set for the rating, which means the strong likelihood of the bank's rating being maintained at the current level. The bank was previously rated at А (very high level of creditworthiness, Sublevel 3), with a negative outlook.
The bank's rating is positively influenced by high capital adequacy and acceptable NPL amounts on the bank's balance sheet. The rating is also backed by well-balanced assets and lending institution by duration in the short-term horizon and acceptable diversification of borrowed funds in terms of creditors.
The lender's rating is adversely affected by low coverage of operating expenses by net interest and commission income and the high portion of unsecured loans.
"The rating downgrade was stipulated by toughening operating and regulatory conditions amid the bank's higher exposure to the risks associated with its business focus on cash settlement services provided to small businesses," RAEX managing director for banking ratings Stanislav Volkov commented.
