OREANDA-NEWS. December 12, 2012. RusRating increased Russian Standard Bank’s credit rating from “A+” to “AA-” on the national scale and from “BB+” to “BBB-” on the international scale, in both cases with a stable outlook.

According to the agency, the rating increase reflects a post-crisis recovery in the Bank’s market positions, further development of its core line of business (retail loans) and falling sensitivity to credit risks.

The rating is based on federal government backing in the form of credit resources, long-term partnerships with international financial institutions, reserves sufficient to cover current losses on client loans, and improved earnings performance.

Constraining factors include narrow lines of business; high credit risks; limited refinancing options; and reputation issues.

Russian Standard is a major private-sector bank controlled by Russian businessman Rustam Tariko and the principal asset of the Russian Standard group. Its business is focused on retail loans and up until 2007 saw rapid growth that made the Bank a market leader in this area. In the second half of that year access to refinancing on international markets began to dry up in response to crisis conditions and Russian Standard started cutting back its business. Retail deposits have now become its primary source of funds. Risks arising from cuts in working loans were offset by investments in securities and claims acquired from third parties. Credit activity is once again growing.