Standard&Poor’s affirmed credit ratings of Bank Vozrozhdenie

4 June 2014

Yesterday Standard & Poor’s published the results of the Russian banks’ credit ratings review. For a number of banks long-term ratings remained unchanged at the current level but the outlook was revised to ‘negative’ from ‘stable’. Bank Vozrozhdenie long- and short-term global scale credit ratings were affirmed at ‘ВВ-/В’ and the Russia national-scale rating — at ‘ruAA-’, the outlook was changed to ‘negative’ from ‘stable’.

“Change of the outlook in relation to Bank Vozrozhdenie ratings reflects the increasing challenges we believe the bank may face as a result of the difficult operating environment, notably regarding its profitability, liquidity, and credit risks,” noted Sergey Voronenko, Associate Director, Financial Services Ratings of Standard & Poor’s.

“We recognize that credit ratings’ outlook review amid current market situation is clearly a consequence of risks escalation in the banking system as a whole. Meanwhile, having successfully overcome several crises in the course of the bank’s 20 years history we gained broad experience of working in worsening economic conditions. We take all necessary steps to ensure the development of our business and the businesses of the bank’s customers. We keep the solid share of the bank’s balance in the liquid assets (above 18% as per Q1 2014 IFRS statements), sound capital position (11.6% according to Basel III standards) and regularly amend our credit policy to preserve credit quality and enhance granularity of the loan book,” commented the outlook review Andrey Shalimov, Deputy Chairman of the Management Board, Bank Vozrozhdenie.

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