Russian rating agency RAEX (Expert RA) has confirmed its creditworthiness rating of B++ (satisfactory level of creditworthiness) on Moscow Industrial Bank, changed its ratting outlook to stable and withdrew the rating following the bank's refusal to have it updated, the agency's press service reported.
The bank's rating is positively influenced by the high proportion of securities that are on the Bank of Russia's Lombard List, stable market positions in corporate lending and retail deposit segments. Experts also pointed to a wide network of business units and moderate NPLs on its balance sheet.
"In early December 2015 the bank was provided with a Rub 6.2 bln subordinated loan as part of the capital injection program, which helped the bank reduce load on capital adequacy (N1.0, given a capital injection while risk-weighted assets remain stable, will be around 12%). This determined the upgrade of the rating outlook to stable," RAEX director for banking ratings Mikhail Doronkin said.
Apart from capital adequacy, the rating is adversely affected by low rates of return (after-tax losses came to Rub 4.17 bln in January – November 2015), and a high proportion of the financial institution's assets that falls to affiliated parties, RAEX added.
