Russian rating agency RAEX (Expert RA) has affirmed Finprombank's creditworthiness rating of B++ (satisfactory level of creditworthiness), reiterating a developing outlook. The rating remained under watch, RAEX's press service reported.
The rating is positively impacted by well-balanced assets and liabilities by maturity with the horizon of up to 30 days (N3 equaled 117.9% as of February 1, 2016) and the high likelihood of the bank's shareholder support.
"The agency is upbeat about the high portion of securities that are on the Bank of Russia's Lombard List (over 80% of the total securities portfolio as of February 1, 2016), growth of the capital adequacy ratio (N1.0 was equal to 10.8% as of February 1, 2016, and 15.4% as of March 1, 2016), and also good coverage of operating expenses by net interest and commission income (225.8% for the fourth quarter of 2015)," the agency noted in a press release.
Analysts think that Finprombank's rating is limited by high dependence of the financial institution's financial results on volatile components, high concentration of active operations on companies associated with the high credit risk (90% as of February 1, 2016) and low coverage of the credit portfolio.
