The credit ratings service at Standard & Poor's has confirmed Bank Obrazovanie's long-term and short-term counterparty credit ratings at B-/C on an international scale and ruBBB- on a national scale. The outlook for the ratings is negative.
As the agency noted, the bank's capitalization indicators decreased in 2015 due to fast growth of balance sheet items. But the agency expects that a Rub 1 bln capital injection by its shareholders, which is scheduled for 2016, and slowing growth of its balance sheet items would contribute to raising the bank's capitalization to a 'moderate' level.
The negative rating outlook reflects the possibility of a drop in the bank's capitalization, liquidity and asset quality owing to adverse trends in economic and sectoral risks in the Russian banking sector which, as S&P forecasts, would persist in 2016.
