OREANDA-NEWS. RusRating has raised OAO B&N Bank's credit rating from "AA" to "AA+" on the national scale and from "BBB" to "BBB+" on the international scale, in both cases with a stable outlook.

The rating increase reflects steady growth coupled with adequate fresh capital; an increasingly diversified business; a capital investment by Mikhail Gutseriev and plans for a further increase in his stake; and significant business contacts and lobbying capacity via the Bank's principal beneficiary owners.

The rating itself is based on the support of a financially-solid owner; an established business and solid market positions; a stable corporate client base; and high current liquidity.

Constraining factors include moderate dependence on retail deposits and a modest interest margin.

B&N Bank is a private-sector universal bank that ranks among Russia's top thirty by assets. It is controlled by Mikail Shishkhanov, who holds a 77.8% interest; Bank founder and former (up until 2002) majority shareholder Mikhail Gutseriev acquired a stake of 20.6% in June 2014. The Bank sits at the centre of a group of finance companies and credit organisations. It has a well-developed, stable and growing market presence in retail deposits and corporate services and is moderately active in the financial markets, where it has accessed debt capital. The service network is well developed and geographically diverse. A long-term strategy developed in partnership with McKinsey & Co. calls for the modernisation and diversification of its retail product line; the wider use of long-term resources; increasing the density of its service network; and improving the diversification of client loans in terms of both industries and individual borrowers.

Own funds are sufficient and of good quality; the Bank is well-placed to access fresh capital and its operations should remain stable in the face of macro-economic stress thanks to its management model and shareholder support. External funding is solid, with growth reported in all main categories; dependence on retail deposits is offset by an upward trend in corporate balances and capital market borrowing. Asset quality is rated satisfactory, as is earnings performance. Risk sensitivity is moderate. Overall liquidity is healthy and current liquidity reserves are high.