OREANDA-NEWS.  National Rating Agency has affirmed its credit rating on Surgutneftegazbank CJSC at ‘AA’. The outlook assigned to the rating is positive.

Surgutneftegazbank is one of the largest banks in its home region. It has a solid business standing and offers its customers a wide range of financial services. The rating is supported by the bank’s improving key performance metrics, strong liquidity and profitability, adequate shareholders' equity, and high-quality assets. The bank is committed to developing its risk management practices and takes a conservative approach to the allocation of resources. The controlling shareholder’s strong support and commitment to the bank are additional credit strengths.

The rating is constrained by Surgutneftegazbank’s concentrated deposit base, dominated by the shareholder, and poor loan workout dynamics over the last few years. We note however that this weakness is partly offset by the bank’s adequate loan loss provisioning.