Russian rating agency RusRating has revised upwards its credit rating on Rostpromstroybank (Rostov-on-Don) to BB-, with a stable outlook, the agency reported.
The rating upgrade is driven by the bank’s successful efforts of keeping the good quality of assets and margins, and also by solid support of its owners and the high capital adequacy ratio.
The national scale rating of this grade enables Rostpromstroybank to bid at CBR collateral-free auctions that are designed to provide lending institutions with greater access to funding and are an additional instrument of ensuring stability.
The lender’s capital adequacy ratio is characterized as high and the quality of its equity capital is classified as good. Diversification of the lending institution’s resource base, the core of which is funds of corporate clients and households, by sources is estimated as moderate. Obligations are modestly concentrated among large creditors, producing a favorable impact on stability. The portfolio of corporate loans, whose quality is positive, prevails in the lender’s assets. The bank’s operating efficiency is valued as strong.
According to the data from Banki.ru and news agency Interfax-CEA, as of January 1, 2009 net assets of Rostov Industrial Construction Bank stood at Rub 3.2 bln (361st place in Russia). The lending institution is a member of the national deposit insurance system.
