ACRA assigns the highest credit rating to Rosbank Group
- 27 April
The Analytical Credit Rating Agency (ACRA) assigned the highest credit rating at the AAA (RU) level to Rosbank banking group with a “stable” outlook. The “stable” outlook assumes that the rating will most likely stay unchanged within the 12 to 18-month horizon.
The rating is based on a very high probability of the bank obtaining extraordinary support from its parent bank that boasts high level of creditworthiness. Rosbank’s high standalone creditworthiness assessment (SCA) is characterized by comfortable capital adequacy, an adequate risk profile, and satisfactory liquidity and funding positions.
Rosbank and its 100% subsidiaries Rusfinance Bank and DeltaCredit form the banking group which enters the top-10 list in terms of capital among banking groups.
Adequate risk profile assessment is based on the Group's risk management system quality, which is characterized by transparency and independency in intragroup decision-making, as well as by regular improvement on its stress methods, carrying out of stress tests and assessment of the current operating environment.
Strong liquidity position is based on high volume of liquid and highly liquid assets that provide an adequate coverage of potential outflows (over the past six months, the short-term liquidity indicator has been consistently exceeding 90%).
The Group also demonstrates balanced funding profile. The Group’s funds are typically raised from clients (61% of its liabilities) mostly on a short-term basis. It should be noted that there is no substantial concentration on the largest borrowers (the top 10 comprise 13.9% of resource base). The Group is also actively involved in debt placement (21% of resource base).
“We thank colleagues from ACRA for the effective work and adequate assessment of our banking group. The credit rating of Rosbank and its subsidiaries Rusfinance Bank and DeltaCredit is the highest one. This once again confirms the high level of our reliability and stable position in the banking sector. Despite the difficult economic situation, we continue to improve our financial performance. Rosbank and its affiliates continue to benefit from a sound liquidity position and solvency ratio among the best in Russia, well above regulatory requirements. We will continue to offer our customers cutting-edge and innovative products with a high level of services, being a reliable partner for them and a reference bank”, Dmitry Olyunin, Rosbank CEO commented.
Rosbank is a 99.95%-owned subsidiary of Societe Generale financial group. The Bank of Russia included Rosbank in the list of 10 systemically important banks. Rosbank enters TOP-3 most reliable banks according to Forbes magazine (March, 2017). Rosbank is ranked 3rd, rising by 4 positions for the last year.
Background Information: on January 27, 2017 Fitch Ratings has affirmed Rosbank, Rusfinance Bank, DeltaCredit Long-term Issuer Default Rating (IDR) at the level of 'BBB-' with stable outlook. Short-term foreign currency IDR is affirmed at 'F3', National Long-term rating is affirmed at 'AAA(rus)' with stable outlook and withdrawn. At the same time the agency has affirmed the banks' viability rating (VR) at 'bb+'. Support Rating is affirmed at '2'.
The affirmation of the Rosbank, Rusfinance Bank, DeltaCredit National Rating reflects Fitch's view that banks are among the strongest credits in Russia. The banks' IDR and Support Rating are underpinned by potential support the bank may receive from its shareholders.Banks' 'bb+' VR reflects their stable asset quality, healthy funding profile, reasonable liquidity and capital, and conservative management and risk appetite.
On February 21, Moody’s Investors Service changed outlook on ratings of 18 financial institutions of Russia from negative to stable including Rosbank, Rusfinance Bank and DeltaCredit Bank. The rating action followed the change of outlook on Russia’ Ba1 sovereign rating to stable.