Rating agency Expert RA has assigned to Bank Russ (Orenburg) a creditworthiness rating of В++ (acceptable creditworthiness), the agency’s press service reported Friday.
“Among factors having a positive impact on the creditworthiness the agency highlighted, first and foremost, the balanced term structure of assets and liabilities, and also support from regional authorities. The bank is deeply engaged in a number of governmental programs (it processes payments to employees from budget-financed institutions and public utilities businesses). Also, the lending institution is authorized as part of target mortgage programs," the agency said in a press release. In 2008 the lender refinanced mortgage loans for more than Rub 900 mln, which allowed it to meet the crisis with the diversified loan portfolio by segments.
Meanwhile, the press service noted that the bank’s concentration on mortgage lending in the retail segment is one of the factors that exerted an adverse impact on its creditworthiness. “Taking into account the relevant portfolio mortgage loans account for over 90%. Of note is also growth, although modest, in overdue loans granted to households. Moreover, rating agency Expert RA pointed to the low tier 1 capital adequacy ratio and the narrow scope of business," the press release emphasized.
Bank Russ specializes in lending legal entities, small and midsized businesses and aggressively rolls out mortgage lending. As of October 1, 2008 the bank’s assets amounted to Rub 4.9 bln and
