Russian rating agency RAEX (Expert RA) has lowered Bank Intercredit's creditworthiness rating from B++ (satisfactory level of creditworthiness) to B+ (quite low level of creditworthiness). The negative rating outlook was left unchanged, thus implying the strong likelihood of a rating downgrade in the medium term.
The rating action was primarily driven by rising volatility of the bank's N3 in the past 12 months amid still high concentration on the funds of its biggest creditors. The rating is capped by very low coverage of the credit portfolio and the imbalance between cash flows on clients' accounts and the bank's assets, which requires higher costs to ensure the bank's internal control system operates properly.
The rating is positive influenced by high adequacy of equity capital and the decent long-term liquidity ratio. The rating is backed by the minimum currency risk that the bank accepts.
