OREANDA-NEWS. August 23, 2011. According to the rating agency, the increase reflects a planned increase in the capital base, steady development, growth in the regional service network and ongoing stable financial indicators.

The rating itself is based on the capacity of the Bank’s owner to provide support; its position at the centre of a group of affiliated non-bank companies; healthy capital adequacy; solid ties to core corporate clients and an established service network; and systematic expansion of its market positions coupled with stable financial measures.

Constraining factors include risks associated with the parent group and other affiliated companies; the concentration of shareholder capital in the hands of a single individual; and a relatively low market share at the national level.

Avangard is a medium-sized (by assets) private-sector bank that forms part of a wider group which includes leasing, shipping and insurance companies plus Russia’s largest malt production holding; its principal beneficiary owner is Kirill Minovalov. Market positions are solid and moderately well-developed and the Bank specialises in leases financed by non-resident creditors and backed by export insurance agencies. Retail operations, particularly car loans and credit cards, are also a priority and Avangard has well-established ties to international financial organisations and domestic banking counterparties.