OREANDA-NEWS. July 07, 2014. Moody’s Investors Service informed of upgrading the Tatfondbank's long-term local- and foreign-currency deposit and debt ratings to B2 from B3. Concurrently, Tatfondbank's standalone bank financial strength rating was upgraded to E+, and its Not Prime short-term ratings were affirmed. At the same time, Moody's Interfax upgraded Tatfondbank’s national scale rating to Baa1.ru from Baa3.ru. The outlook on all the ratings is stable.

The upgrade of Tatfondbank's ratings is driven by such positive factors as substantial decrease in non-core banking assets, as well as a reduction in loans concentrations, supported by shareholder's capital injection. Tatfondbank conducted the RUB4 billion capital injection in December 2013, which improved the bank's capital buffer. In addition to this, the agency believes that there is a probability of parental support to the Bank from the government of the Republic of Tatarstan. Moody's bases its support assumptions on Tatfondbank's more than 26% indirect ownership by Republic of Tatarstan and the bank's material market share in the Republic of Tatarstan.

Further, the agency’s analysts observe a declining trend in Tatfondbank's borrowers concentrations driven by development of retail lending.

‘The positive rating actions reflect the Bank’s strong positions and the steady growth of its financial and economic indicators. Our business reputation, performance, and investor confidence enabled us to receive several ratings at once, and helped us to become the first Russian bank to place Eurobonds after the events in Crimea’, said Vadim Merzlyakov, Deputy Chairman of the Board of Management, commenting on the event.

We would like to remind that several positive rating actions were taken this year in respect of Tatfondbank on the part of international and domestic rating agencies. Starting from the beginning of the year, the bank was assigned ratings from Standard & Poor’s (B/B and ruA credit ratings, outlook stable), which later affirmed these ratings at the same level, and the ratings from two national agencies: from AK&M Agency (A+ credit rating, stable outlook), and National Rating Agency (AA- national scale credit rating). Besides, Expert RA Rating Agency has confirmed the rating of creditworthiness of Tatfondbank at the level of A.

Thus, Tatfondbank’s positions are confirmed by ratings of such independent international and national agencies as Standard & Poor’s, Moody’s, Expert RA, АК&M, and National Rating Agency.