Rating agency Expert RA has bestowed a creditworthiness rating of В++ (acceptable creditworthiness) on European Trust Bank, the agency reported Monday.
“Among positive factors that influenced the rating the agency’s experts name a competitive advantage enjoyed by the bank (Migom, its own money transfer system). Apart from this, Eurotrust’s Rub 181 mln SPO that the Central Bank of Russia registered on December 30, 2008, is viewed by experts as a sign the owners are interested in developing the bank. An additional positive feature is the possibility to attract funds at CBR-held uncollateralized auctions," said in a press release.
Meanwhile, the agency emphasized that “the primary factor that exerted an adverse impact on the rating was the relatively modest capital adequacy ratio”. In addition, in its activities Eurotrust focuses on short-term funds of its clients and lending institutions, with which the bank deals within the Partner-Bank program. This results in definite imbalance in the term structure of assets and liabilities. The lending institution’s relatively modest capital adequacy ratio, although driven by the aggressive expansion of its regional network, is also a constraint. The rating was also depressed by the fairly high portion of NPLs issued to legal entities and also high concentration of loans granted by specific issuers and products," the press release pointed out.
According to the data from Banki.ru and news agency Interfax-CEA, as of January 1, 2009 net assets of European Trust Bank stood at Rub 8.53 bln (197th place in Russia). The lending institution is a member of the national deposit insurance system.
