OREANDA-NEWS. RusRating has increased the credit rating of Millennium Bank from “BBB-” to “BBB” on the national scale and from “BB-” to “BB” on the international scale, in both cases with a stable outlook.

According to the agency, the rating increase (from “BBB-” to “BBB” on the national scale and from “BB-” to “BB” on the international scale) reflects a more transparent ownership structure and capital investments by major enterprises in the rail transport industry.

The rating is based on the image support provided by RZD Russian Railways plus stable ties to that company’s operating units, subsidiaries and business partners; a healthy capital base; and current liquidity independent of the interbank and securities markets.

Constraining factors include a business narrowly focused on a small number of firms in the transport sector and high exposure to political risks arising from dependence on a prominent state-owned enterprise.

Millennium Bank is a smaller (by assets) private-sector Moscow bank that (according to official documents) has been controlled since 2008 by the privately-owned SK Most Group, RZD Russian Railways’ largest contractor; JSC RZD-Razvitiye Vokzalov [trs. RZD Railroad Station Development OJSC] holds a stake of just under 20%. The Board of Directors is chaired by RZD Vice-President Oleg Toni and Management Chairman Mikhail Baidakov is an advisor to the President of RZD; Russian Federation senator Sergei Scheblygin, another advisor to RZD’s President, heads the audit commission. The Bank’s core business is the provision of services to RZD operating divisions, subsidiaries and business partners.