Russian rating agency Expert RA has assigned to Kurskprombank a B++ creditworthiness rating (acceptable creditworthiness), the rating said in a press release.
The primary factor exerting a positive impact on the lending institution’s creditworthiness, as the agency recognized, is low overdue debts of corporate clients (as of January 1, 2009 this indicator equaled 0.28% with an acceptable level of debts prolonged). Also, other positive factors include strong ROA and ROE, as well as the diversified structure of loans due by industries and clients. The rating was positively influenced by the high level of collateral against loans issued, both for corporate ad household loans (taking into account securities collateralized, suretyship and warranties this equaled 395% of the loans granted as of January 1, 2009). Kurskprombank is marked to be not sensitive to stock risks and the concentration of ten largest creditors in its liabilities is low.
The lending institution’s rating was dampened by the modest capital adequacy ratio (it came in at 15.9% as of January 1, 2009). Another constraint is the imbalanced ratio of equity and additional capital in its own funds. Throughout 2008 the percentage of the tier 1 capital varied from 50 to 60%. “The additional capital was mainly formed on the back of a rise in the value of the lending institution’s property after revaluation (41.49% as of January 1, 2009) and retained earnings of 2009 (38.5% of the additional capital)," pointed out Stanislav Volkov, leading expert from the rating agency’s financial institutions ratings service. Furthermore, the bank’s creditworthiness is depressed by the imbalanced structure of its assets and liabilities by maturity.
Kurskprombank is a financial institution targeting retail clients that rolls out its network in the Kursk region. The lender also operates in the Belgorod, Orel and Voronezh regions.
According to the data from Banki.ru and news agency Interfax-CEA, as of January 1, 2009 net assets of Kursk Industrial Bank stood at Rub 7.9 bln (210th place in Russia). The lending institution is a member of the national deposit insurance system.
