Russian rating agency RAEX (Expert RA) has affirmed Grand Invest Bank's creditworthiness rating at A (high level of creditworthiness), with a stable outlook, the agency's press service reported.
The rating was positively influenced by the high core capital adequacy ratio (N1.2 stood at 11% as of February 1, 2016), well-balanced assets and liabilities by maturity in the st horizon (N2 equaled 165.2%, and N3 was equal to 166.2% as of February 1, 2016), acceptable rates of return (ROE under RAS after taxes, excluding events occurring after the reporting date, came in at 5.8% in 2015) coupled with good coverage of operating expenses by net interest income and commission income (163.1% for 4Q 2015).
Analysts think that the rating is adversely affected by the high proportion of doubtful and bad loans coupled with an increase in overdue debt maintained on the bank's balance sheet (the portion of overdue debt of businesses and individual entrepreneurs rose from 0.9% as of April 1, 2015 to 9.8% as of February 1, 2016), and also by its insufficiently conservative policy of provisions.
Grand Invest Bank's rating is restrained, in particular, by the high level of currency risks accepted by the bank, insufficiently balanced assets and liabilities by maturity in the long-term horizon (N4 equaled 83.8% as of February 1, 2016), RAEX added.
