National Rating Agency has affirmed B&N Bank's creditworthiness rating at AA, with a stable outlook, the agency reported, noting the creditworthiness rating (AA-) was first assigned to the bank on July 12, 2011, and the latest rating action was taken on September 11, 2015 when the bank's creditworthiness rating was affirmed at AA, also with a stable outlook.
Factors determining rating affirmation are a strong group of shareholders and high owner support, stable liquidity positions and the bank's high potential possibilities to draw resources to maintain liquidity, rising capitalization that not only expanded the bank's lending possibilities, but also made additional formation of provisions quite comfortable, the agency noted in a press release. The lender's resource base is well diversified by sources of funding and is marked by moderate dependence on the money of the biggest creditors. The bank generates profit under both IFRS and RAS. The agency pointed to tangible growth of the bank's net interest margin in the first half of 2016.
Among rating constraints the agency named high concentration of the credit portfolio on the biggest borrowers, growing overdue debt and dependence of B&N Bank's income base on inter-bank loans.
