Russian rating agency RAEX (Expert RA) has confirmed Bank Zerich's creditworthiness rating at B+ (quite low level of creditworthiness), putting it on watch, with a negative outlook, the agency's press service reported.
The bank's rating is positively influenced by acceptable coverage of the bank's credit portfolio (as of December 1, 2015 the credit portfolio coverage, taking account of collateral of securities, sureties and guarantees, equaled 306.7%, and 129.9% taking no account of the above) and low readings of N4 (as of December 1, 2015 N4 was equal to 43.2%).
"The bank's rating is adversely affected by an increase in the balances held on correspondent accounts at a bank that is rated below A on RAEX's rating scale. At the same time, the agency expects a drop in funds falling to a counterparty with the low credit rating, which put its rating on watch," RAEX analysts pointed out.
