13 November 2010
Moody’s Investors Service has today changed the outlooks to stable from negative on Bank Vozrozhdenie’s long-term local and foreign currency deposit ratings. The Bank’s rating remained Ba3, and Financial Strength Rating (BFSR) D-. The bank’s Not Prime short-term local and foreign currency deposit ratings remain unchanged on a level Ba3/NP.
“According to Moody’s, the rating action on Vozrozhdenie reflect the stable trends in the financial fundamentals of the bank. Asset quality, which was a concern since late 2008 when the crisis hit Russia, has been relatively stable throughout 2010. The bank’s provisioning and capitalization levels are adequate for the level of problem loans” — noticed Eugene Tarzimanov, a Moody’s Vice-President — Senior Analyst.
Change of outlook mostly related with the expectation of rating agency that V-Bank’s asset quality could improve in 2011. According to Moody’s this improvement could be supported by positive economic developments and problem loan workouts. Problem loans are fully covered by provisions while strong capital adequacy creates buffer against potential credit losses.
“This is already second rating action reflecting positive changes. Recently rating agency Standard & Poor’s has also changed the Bank’s outlook to positive. Rating agencies positively asses Bank’s capability of future growth and mention our key strengths such as high capital adequacy ratio, adequate liquidity and problem loans coverage level”, — commented Andrey Shalimov, member of the Management Board and Head of Treasury.