OREANDA-NEWS. National Rating Agency has affirmed its national scale credit rating on EUROCOMMERCE CB PJSC at ‘BBB’ and assigned a negative outlook to it.

The rating is supported by the high proportion of instantly liquid assets in EUROCOMMERCE’s net assets, as well as the bank’s excess liquidity, good capital adequacy metrics, supporting the medium-term lending growth, high level of retail deposits protected by the Deposit Insurance Agency’s guarantee (around 96% of the total), developing branch network and improving product range.

The rating is constrained by the bank’s increased losses in 2H 2014, last year’s two-fold growth of nonperforming loans, low collateral-to-loan ratio in the context of the corporate loan book expansion (+115% since Jan. 1, 2015), growing liabilities, high share of retail deposits in total liabilities (84% as of the latest reporting date) and decreasing fees and commissions.