OREANDA-NEWS. RusRating has changed the outlook on OAO Khanty-Mansiiski Bank's credit rating from "stable" to "positive". The rating itself is unchanged at "AA" on the national scale and "BBB" on the international scale.

The change in outlook reflects the Bank's integration into the FK Otkritie group and a merger with Bank FC Otkritie that is expected reinforce its market position, expand its access to financial resources and widen its capacity to lobby in business and political circles.

The rating itself is based on the Bank's system-critical status in its home region; support from financially-strong shareholders and affiliation with a major banking group; an established market presence at the national level; and a stable client base drawn from large and creditworthy regional enterprises.

Constraining factors include minimal transparency with respect to the non-bank interests of the Bank's owners and moderate realisation of the Bank's potential (relative to its systemic importance).

Khanty-Mansiiski Bank (KhMB) is a major regional bank of national significance (one of Russia's top thirty by assets) and the largest in Tyumen region. Its principal shareholder is Bank FC Otkritie (the former NOMOS-Bank), which controls just over 51.3% of equity; a 48.1% stake is held by OOO Ferrosplav Invest, a Bank FC Otkritie affiliate. The Otkritie banking group - which also includes Otkritie Bank - is Russia's largest private-sector banking group, with R1.379trn in assets on the basis of IFRS accounts for 2013; plans call for Petrocommerce Bank to join the group next year. KhMB's core business is working with corporate and retail clients in its home region, as well as local government bodies. It has a well-developed regional service network and is a notable player in both trade financing and interbank loans.

Capital is sufficient and of good quality. External funding is stable and well diversified by type; retail and corporate client balances predominate and little use is made of state-sector resources. Asset quality is rated favourably. Earnings performance is volatile due to a modest interest margin, the noticeable impact of speculative activity and pressure from expenditures on loan provisioning. Overall risk sensitivity is moderate. Liquidity is sufficient.