OREANDA-NEWS. July 03, 2012. The rating increase reflects reinforced market positions following a merger with Nizhegorodpromstroibank (NPSB), reduced dependence on on-call resources and a decline in the role of direct political connections.

The rating itself is based on the owners’ substantial financial/political resources; high capital adequacy and healthy asset quality; strong liquidity management; solid market positions at the regional level; and a stable circle of corporate clients.

Constraining factors include the short period of time elapsed since the recent change of ownership.

Sarov Business Bank (SBB) is a mid-sized (by assets) private-sector bank and the largest in the Nizhni Novgorod region, where most operations take place. In December 2011 former majority shareholder Vladimir Kirienko (50.09% stake) sold out to three private individuals including Bank President Irina Alushkina; none of the three controls more than 20% of equity and Vladimir Travin, who chairs the Board of Directors at state-owned Atomenergoprom, retains a blocking stake. The Bank’s business centres on serving a number of major corporate clients plus the retail market and SME loans. Within its home region market positions are solid. The Bank works with some state-sector enterprises and is well-connected politically at the local level. A merger with Nizhegorodpromstroibank was finalised in 2011.