OREANDA-NEWS. RusRating has increased OOO Expobank's credit rating from "A+" to "AA-" on the national scale and from "BB+" to "BBB-" on the international scale, in both cases with a stable outlook.

According to the agency, the rating increase reflects healthy growth in the Bank's business coupled with continuing moderate risk exposure and the development of effective lines of business, which has contributed significantly to the ongoing health of key financial indicators.

The rating itself is based on dynamic growth following a change in ownership; a stable client base among larger firms; and healthy capital adequacy.

Constraining factors include market positions that are underdeveloped compared to those of higher-rated banks and capital concentrated in the hands of single beneficiary owner.

Expobank is a private-sector bank and one of Russia's top one hundred credit organisations by assets. In late 2011 it was sold by Britain's Barclays Bank to Igor Kim and his partners. A universal private-sector financial institution, it offers a wide range of both corporate and retail services. Priorities include building long-term ties to corporate clients and the provision of premium personal banking services. The Bank is successfully implementing a new strategy adopted following the change in ownership.

Capital adequacy is healthy and provides good scope for growth; capital quality is rated favourably. External funding draws mainly on retail and corporate client resources; diversification has improved thanks to the issue of securities and increased borrowing on the interbank market (including from the Central Bank). Asset quality is rated favourably, based primarily on analysis of client loans and the securities portfolio. Profitability measures are healthy. Sensitivity to financial risks is moderate. Liquidity risks appear modest given the term structure of assets and liabilities.