Expert RA Upgraded Dig-Bank Creditworthiness Rating
OREANDA-NEWS. 'Expert RA' rating agency upgraded 'Dig-Bank' creditworthiness level to A, which means high credit solvency, the sub-level is three. The rating outlook is stable, which means high probability of maintaining the rating in the mid-term. The Bank used to have rating B++, which means acceptable credit solvency, with the stable outlook.
The share capital increase by RUB 70 million in June 2013 and reduction in prolonged debt in the loan portfolio from 27% to 16% in the period from January 1, 2013, to August 1, 2013, were the key factors for upgrading the rating. The moderately high loan portfolio security and the high share of long (more than 180 days) liabilities were still the factors having a positive impact on the Bank rating. High acid and current ratios, minor currency risks undertaken and strong competitive standing on the banking market in the Republic of North Ossetia/Alania supported the rating.
'Expert RA' analysts highlight profitability ratio deterioration due to increase in interest costs as the main rating-restraining factor. The moderately high concentration of active transactions on major credit risk items, the insufficiently conservative loan provisioning policy, high reliance of liabilities on individuals' money and increased instability of funds raised from corporations continue exerting pressure on the rating.
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