OREANDA-NEWS. February 02, 2015. RusRating has changed the outlook on KB “Poidem!”’s credit rating from “stable” to “negative”. The rating itself is unchanged at "BB" on the international scale and "BBB+" on the national scale.

According to the agency, the change in outlook reflects increased sensitivity to retail credit risks and a funding base dependent on retail deposits coupled with deteriorating macro-economic conditions; negative trends affecting the banking sector as a whole; and a shrinking balance sheet and market presence.

The rating itself is based on the financial and image support provided by ProbusinessBank and the non-financial resources of the LIFE group’s owners.

Constraining factors include a funding base dependent on retail deposits (which are most prone to panic outflows under deteriorating banking sector conditions); a shrinking balance sheet and market presence; and increased credit risks.

About the Bank

KB “Poidem!” is a smaller private-sector bank and a member of the LIFE group, which includes six banking subsidiaries plus Life Factoring, the real estate developer Probusiness-Development and ProbusinessBank, the larger financial institution at the head of the group. “Poidem!” itself operates primarily in the market for consumer loans, as called for by overall group strategy. Well-developed infrastructure gives it a presence in twenty regions of the country.

Capital is sufficient and of good quality. External funding draws mainly on retail deposits; risks arising from dependence on a single class of funds are offset by access to LIFE group resources. Overall asset quality is rated satisfactory; consumer loans account for the bulk of revenue-generating assets. Earnings performance is weak. Overall risk sensitivity is elevated. Current liquidity is sufficient and risks to liquidity are judged modest.