OREANDA-NEWS . September 4, 2012. According to the agency, the rating increase reflects the increased diversification of the Bank’s ownership structure following capital investments by the EBRD and IFC.

The rating itself is based on steady financial support from the Bank’s owner, the presence of the EBRD and IFC as shareholders, stable ties to both corporate clients and foreign partners, substantial growth in market share and an increasingly diversified business coupled with broadly stable financial indicators.

Constraining factors include the Bank’s dependence on a single individual (its principal beneficiary owner) and risks associated with rapid growth.

Credit Bank of Moscow is a larger (by assets) private-sector Moscow bank in which Roman Avdeev holds an 85% stake; the remaining 15% of equity is split equally between the EBRD and IFC. Operations with corporate clients (notably including integrated services for major retail chains in the Moscow region) are its core line of business, but the Bank is gradually diversifying into retail. Market positions in retail deposits and corporate loans are healthy and CBM has experience working with a range of foreign partners. Securities market activity is moderate.