OREANDA-NEWS. December 29, 2012. According to the agency, the change in rating from “stable” to “positive” reflects steady development trends and effective risk management.

The rating itself is based on a stable corporate client base, strong support from the Bank’s owner, stable and professional management, and an important social function in the Krasnodar region.

Constraining factors include dependence on a single class of funding, high exposure to large-scale credit risks and affiliated borrowers, and a business concentrated on a single region.

Kuban Credit is a private-sector regional bank that operates in the Krasnodar region and is one of the top one hundred banks in Russia. The Bank is owned by businessman V.K. Budarin and its core line of business is the provision of corporate loans, some of which are extended to affiliated companies. Retail activity has been developing since 2001, with an emphasis on deposits, payments and plastic cards; a mortgage loan programme was launched in 2005. The Bank has a well-established network of sub-branches in its home region and is a leading player in all main segments of the local market. Speculative activity and interbank loan volumes are insignificant.