OREANDA-NEWS. According to the agency, the change in outlook (from “stable” to “positive”) reflects steady growth in the Bank's business and improvements in key financial indicators.

The rating is based on renewed growth; stronger and more consistent earnings performance; established market positions; access to federal government backing in the form of credit resources; and long-term partnerships with international financial institutions.

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

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 and turned to retail deposits as an alternative source of funds; these are now the largest component of liabilities. 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.