S&P Rates TransCreditBank RUAA- by National Scale
OREANDA-NEWS. June 18, 2007. Standard&Poor’s, assigned ruAA- rating to TransCreditBank using the national scale. Earlier in February this year the agency rated the Bank’s long-term debt as BB- with a positive outlook and short-term debt as B- with a positive outlook based on its international scale.
Ms. Elena Romanova, a credit analyst with S&P, commented that the Bank’s ratings are driven by its insufficient capitalization and concentration of its business in one sector of economy, however, counterbalanced by stable strategic and day-to-day relations with JSC Russian railways, improving profitability, adequate quality of its assets and moderate level of market risks to which the Bank is exposed.
“Improving economic performance and financial stability of TransCreditBank as a stand-alone entity as well as potential increase of equity after (or in the process) of the ownership change would contribute to a rating upgrade”, emphasized Ms. Romanova.
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