OREANDA-NEWS. The positive outlook reflects steady ongoing growth in the Bank’s business and falling sensitivity to credit risks thanks to increased loan loss reserves and healthy earnings.

The rating is based on the support of ProbusinessBank and well-developed market positions at the regional level, plus a funding base and current liquidity independent of the domestic interbank market.

Constraining factors include the limited diversification of both asset and funding side operations and refinancing options dependent on the stability of the LIFE group as a whole.

About the Bank:

Gazenergobank is a smaller (by assets) private-sector regional bank, the largest in the Kaluga region and a member of the LIFE group, which has loan offices and other service locations in several regions of the country; the group includes six subsidiary banks plus Life Factoring, the real estate developer Probusiness-Development and ProbusinessBank, the larger Moscow financial institution at the head of the group. The Bank’s own market positions are growing and show healthy scope for further development. Although operations remain focused on the retail segment its corporate business is gradually expanding, with an emphasis on services for small and mid-sized regional enterprises.