Russian rating agency AK&M has raised its national scale creditworthiness rating on StarBank to B++ from В+, the lending institution’s press service reported.
At the end of 2008 the portion of securities in the lender’s assets declined considerably (over 21% of the assets as of July 1, 2008 compared to only 2.44% as of February 1, 2009). As before, nearly the entire market portfolio comprises bonds, while fixed-income instruments of Alliance-Finance account for the largest portion (94%). Thus, these changes substantially lowered the market risk, which is an important factor of support to the rating amid uncertainty on the global financial markets, the agency noted.
In the second half of 2008 and in January 2009 StarBank demonstrated a fast rate of growth in assets and liabilities. During this period the bank’s assets increased by more than 40% to Rub 5.9 bln as of February 1, 2009. Liabilities grew on the back of increasing obligations to non-lending institutions. Also, in the second half of the year the bank saw the arrival of new clients, which showed loyalty of the bank’s current client base and also expansion of the clientele.
As regards the placement of resources, the bank changed its strategy in favor of lifting amounts lent to legal entities (primarily households took credits in the first half of 2008). Expansion of the credit portfolio via non-lending institutions allowed the bank to raise the amount and improve the quality of the credit portfolio. As of February 1, 2009 the lending institution’s credit portfolio came to Rub 4.4 bln vs. Rub 2.4 bln as of July 1, 2008. Among positive changes, the agency highlighted a contraction in overdue debts (2.748% as of July 1, 2008 (against the national average of 1.3% compared to 2.668% as of February 1, 2009), while the national average of overdue debts took a sharp jump and topped 2.2% in January 2009.
Furthermore, continuing growth in liquidity could be regarded as a positive, as the rating agency’s professionals believe, which translated into a spike in high-liquidity assets in the lender’s assets in H208 and in early 2009. The bank continues to pursue a conservative liquidity management policy, which is underscored by high liquidity ratios (instant liquidity and current liquidity ratios). As of February 1, 2009 the lending institution’s instant liquidity ratio came in at 86.9% and that of current liquidity stood at 160.2% vs. 37.9% and 109.4% as of July 1, 2008.
According to the data from Banki.ru and news agency Interfax-CEA, as of January 1, 2009 net assets of StarBank stood at Rub 6.2 bln (237th place in Russia). The lending institution is a member of the national deposit insurance system. The bank’s previous corporate name is Noyabrsk City Bank.
