Expert RA assigns B&N Bank ruBBB credit rating with positive outlook
Expert RA (RAEX) rating agency today assigned B&N Bank ruBBB credit rating with positive outlook.
This rating is attributable to the Bank’s strong capital and liquidity position, strong asset quality and shareholder support from the Central Bank of Russia (CBR), which owns more than 99.9% of the Bank’s common equity.
The positive outlook takes into account plans to consolidate B&N Bank’s business with FC Otkritie Bank, leading to a strengthening of the business profile and operating efficiency of the combined bank in the medium term.
RAEX analysts note that the assigned rating assumes the CBR will remain the major shareholder of the combined bank for at least two – three years, underpinning their assessment of the high probability of external support, in case of necessity.
The agency assesses B&N Bank’s capital adequacy and loss absorption buffer as high and calculates that the Bank’s capital is sufficient to withstand the impairment of more than 50% of assets exposed to credit and market risk, and off-balance sheet obligations. In addition, the rating is supported by the high credit quality of the Bank’s securities portfolio, which accounts for circa one third of the Bank's assets.