OREANDA-NEWS. May 20, 2013. International rating agency Standard & Poor’s affirmed the ratings of B&N Bank at “B/B” with stable outlook. Russia national scale rating was affirmed at “ruA-” as well.

Among major rating factors S&P mentioned well-established business position of B&N Bank in Moscow, broad regional network, sufficient liquidity and adequate funding structure.  Moreover, the Bank’s ratings were underpinned by its improving asset quality and reduction in loan concentrations.

S&P analysts view positively a new long-term strategy of the Bank looking into 2020, under which it aims to develop retail banking and corporate lending and shift the emphasis from large clients to midsize clients and SME lending. B&N Bank’s plans to refocus from real estate and construction to a more diversified loan book were also approved by the agency.  In S&P opinion, the Bank’s strategic initiatives can improve the diversification and the sustainability of its business model.

The stable outlook on B&N Bank’s ratings reflects S&P expectation that the Bank will maintain a positive financial performance, further improve its margins and generate sufficient profits to maintain its capitalization at current levels.