(The following statement was released by the rating agency)
Dec 04 -
Summary analysis -- CentroCredit Bank JSC ------------------------- 04-Dec-2012
CREDIT RATING: B/Stable/B Country: Russia
Primary SIC: Commercial banks,
Credit Rating History:
Local currency Foreign currency
19-Nov-2012 B/B B/B
24-Jul-2007 B-/C B-/C
Ratings Score Snapshot
Issuer Credit Rating B/Stable/B
Business Position Weak (-2)
Capital and Earnings Very Strong (+2)
Risk Position Weak (-2)
Funding and Liquidity Below Average
and Moderate (-1)
GRE Support 0
Group Support 0
Sovereign Support 0
Additional Factors 0
Major Rating Factors
-- Very strong capitalization as measured by our risk-adjusted capital
-- A stable and experienced management team.
-- Intrinsic vulnerability as a small financial institution operating in
a risky environment.
-- High exposure to volatile trading business.
-- Funding dominated by loans under repurchase agreements.
The stable outlook on Russia-based CentroCredit Bank JSC reflects Standard &
Poor's Ratings Services' opinion that the bank's business and financial
profiles will remain stable over the next 12-24 months. We expect the bank to
maintain very strong capitalization over the medium term, supported by good
internal profit generation.
We could raise the ratings if the bank reduced its reliance on
market-sensitive and volatile income and demonstrated better business
diversification. Development of a larger and more diverse depositor base, as
well as a higher liquidity cushion, would be positive for the ratings.
We could lower the ratings if faster-than-expected growth or
lower-than-expected profitability put a strain on the bank's capitalization,
reducing our forecast risk-adjusted capital ratio before adjustments for
diversification to lower than 15%.
Related Criteria And Research
All articles listed below are available on RatingsDirect on the Global Credit
Portal, unless otherwise stated.
6921376&rev_id=6&sid=1017889&sind=A&", Nov. 9, 2011
6782163&rev_id=3&sid=1017889&sind=A&", Nov. 9, 2011
6338060&rev_id=10&sid=1017889&sind=A&", Dec. 6, 2010