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

According to the agency, the negative outlook reflects increased sensitivity to deteriorating macro-economic conditions against a background of dependence on speculative earnings and a shrinking loan book.

The rating is based on solid market positions at the national level; owners well placed to lobby with regulators; a healthy degree of financial flexibility; and effective management.

Constraining factors include above-average sensitivity to current macro-economic conditions and limited scope for capital growth.

About the Bank

AKB ProbusinessBank is a major private-sector Moscow bank and one of Russia's top one hundred by assets. Its principal beneficiary owners are its own top managers, with a controlling stake in the hands of Chairman of the Board and Bank President Sergei Leontiev; minority investors include both Russian and non-resident investment funds, most notably one managed by Sweden’s East Capital International AB. The Bank sits at the centre of the LIFE financial group, which also includes six subsidiary banks plus a factoring company and a real estate developer. Both it and the group operate at the national level, providing loans and other services to corporate and retail clients, and their market positions are growing.

Capital is sufficient and of satisfactory quality; the Bank’s capacity to independently maintain an adequate capital base is judged moderate. External funding is well diversified by both instrument type and individual client and its stability is rated favourably. Assets are of satisfactory quality but the delinquency ratio is noticeable and exposure to market risk is elevated; the balance sheet’s revenue-generating potential is poor. Earnings performance is weak. Overall risk sensitivity is elevated. Liquidity is sufficient.