2 June 2011
Bank Vozrozhdenie “B+/B” counterparty credit rating and “ruA+” Russia national scale rating with “positive” outlook were affirmed by Standard & Poor’s rating agency on stabilized asset quality.
“Currently the majority of Russian private banks have to operate in tough business environment — pressure from state banks with cheap funding base became apparent after crisis. As a result we focused on business, generating fees and commissions, and strictly controlled undertaken risks given low interest rates on the market. It is quite natural that Standard & Poor’s’ pointed out the bank’s improvement in risk management and positive trend in asset quality”, — commented Andrey Shalimov, member of the bank’s Management Board and Head of Treasury.
Rating affirmation with positive outlook reflects the bank’s asset quality stabilization, progress in risk management system and satisfactory funding and liquidity positions. “We expect that the bank’s internal capital generation will improve in 2011 with profitability recovering” — underlined rating agency analysts. Sustainable fee and commissions income, lower provisioning costs and favorable repricing of retail deposits are mentioned among main profitability drivers in Standard & Poor’s press-release.
A positive rating action will be considered in case of stronger earnings recovery amid maintenance of adequate capitalization and improvement of asset quality.