OREANDA-NEWS. The rating affirmation for Yar-Bank is based on its high capital adequacy, strong liquidity position, favourable equity structure, persistently high-quality trading portfolio (used as an additional source of liquidity), as well as the nonperforming loans' reduction and loan collaterization improvement.

NRA also note the probability of support from one of the bank's shareholders, METROPOL IFC (NRA's reliability rating of 'AAA', affirmed in January 2015).

Offsetting these strengths are the bank's negative financial result for 2014 (- RUB191.9 million), the outflow of customer deposits (- 35% since Feb. 1, 2014), high proportion of funds raised under repo transactions with the Bank of Russia (30.4% of total liabilities, as 80% of securities in the bank's trading book are used in such transactions), the persistently high single-name concentration of its loan book (20 largest borrowers account for around 70 of total loans), and the increased dependence on large customers (creditors) in 2014 (10 largest customers accounted for more than 33% of the total liabilities as of Jan. 1, 2015 compared with 24% a year earlier.)