Expert RA Rating Agency Confirmed Profit Bank Creditworthiness Rating
OREANDA-NEWS. Expert RA rating agency confirmed 'Profit Bank' creditworthiness rating B++, which means acceptable credit solvency; the rating outlook changed for stable. The stable outlook means high probability of maintaining the rating in the mid-term. The Bank used to have the developing outlook.
High RoE combined with high coverage of operating costs with net interest and commission income and the provisioning ratio adequate to the current credit risk level support 'Profit Bank' rating.
The extremely low loan portfolio security, which is accounted for by the Bank's narrow specialization in lending to companies for fulfilment of public contracts became the principal factors restraining the Bank's creditworthiness. Moderately high past-due debt in the corporate and retail loan portfolio, high concentration of assets on major credit risk items and the inadequate balance of assets and liabilities, by their maturities, in the short- and mid-terms also downgrade the rating.
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