Standard & Poor’s has affirmed credit ratings of Vozrozhdenie Bank and removed CreditWatch

20 February 2016

Standard & Poor’s Ratings Services has affirmed the long- and short-term credit ratings of Vozrozhdenie Bank at ‘BB-/B’ on the global scale and ‘ruAA-‘ on the Russia national scale and removed the ratings from CreditWatch where they were placed with negative implications on August 24, 2015.

“We believe that Vozrozhdenie Bank’s business profile is set historically to be more sustainable than those of most midsize banks in Russia, based on its well-established position in the relatively wealthy Moscow region, its adequate business mix, and less aggressive growth targets compared to peers’. We believe the new major shareholder of Vozrozhdenie Bank in the near term will aim to maintain the bank’s historically prudent and well-articulated strategy, which has allowed it to post recurring, healthy operating profits in the past”, commented Sergey Voronenko, Deputy Head of Standard & Poor’s Ratings Services.

“We are glad that Standard & Poor’s confirmed Vozrozhdenie Bank ratings after the new shareholding structure had settled. Our key priorities in terms of conservative risk management, focus on most attractive segments of SMEs and mortgages remain intact, while the major shareholder’s willingness to support the capital provided additional comfort to the rating agency.

The bank has managed to maintain its market positions in the tough period of ownership change. Now, with the support of customer loyalty and strong reputation in the regions where the bank operates, we exploit new development opportunities despite the challenging operating environment”, commented Andrey Shalimov, Deputy Chairman of the Management Board.

The negative outlook, according to the rating report, reflects difficult operating conditions in Russia. The rating could be lowered in case of significant deterioration of the bank’s risk profile or earning power, or if the agency sees that V.Bank’s status toward the group is weaker than a core subsidiary, resulting in limited probability of extraordinary support from the group.

Vozrozhdenie Bank Board of Directors has held a meeting
Following review of sovereign ratings, Moody’s Investors Service placed ratings of 37 banks, including Vozrozhdenie Bank, under review