Russian rating agency RAEX (Expert RA) has increased its outlook for OFK Bank's credit rating from stable to positive, which means a high probability of a rating upgrade over the medium term. The bank's rating was confirmed at В++ (satisfactory level of creditworthiness).
The agency still positively assesses rates of the bank's return before income from assets received for free and high coverage of operating expenses by net interest and commission income. The lender's rating is backed by the high proportion of loans from the first and second quality categories and low NPLs maintained on its balance sheet. Furthermore, as of December 1, 2015 the bank's entire securities portfolio consisted of bonds that are on the Bank of Russia's Lombard List.
"The agency welcomes the bank's plans to maintain its capital adequacy ratio not below 11%, including after the introduction of regulatory eased requirements as to reduce requirements for the N1.0 ratio to 8%. Such capital cushion will allow the bank to withstand, if necessary, the implementation of any of the 30 biggest credit risks," RAEX managing director for banking ratings Stanislav Volkov commented.
