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TEXT-S&P summary: CentroCredit Bank JSC
December 4, 2012 / 12:26 PM / 5 years ago

TEXT-S&P summary: CentroCredit Bank JSC

(The following statement was released by the rating agency)

Dec 04 -

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Summary analysis -- CentroCredit Bank JSC ------------------------- 04-Dec-2012

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CREDIT RATING: B/Stable/B Country: Russia

Primary SIC: Commercial banks,

nec

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Credit Rating History:

Local currency Foreign currency

19-Nov-2012 B/B B/B

24-Jul-2007 B-/C B-/C

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Ratings Score Snapshot

Issuer Credit Rating B/Stable/B

SACP b

Anchor bb

Business Position Weak (-2)

Capital and Earnings Very Strong (+2)

Risk Position Weak (-2)

Funding and Liquidity Below Average

and Moderate (-1)

Support 0

GRE Support 0

Group Support 0

Sovereign Support 0

Additional Factors 0

Major Rating Factors

Strengths:

-- Very strong capitalization as measured by our risk-adjusted capital ratio.

-- A stable and experienced management team.

Weaknesses:

-- 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.

Outlook

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.

"here 6921376&rev_id=6&sid=1017889&sind=A&", Nov. 9, 2011

"here 6782163&rev_id=3&sid=1017889&sind=A&", Nov. 9, 2011

"here 6338060&rev_id=10&sid=1017889&sind=A&", Dec. 6, 2010

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