OREANDA-NEWS. National Rating Agency has raised its national scale credit rating on Orenburg Mortgage Commercial Bank Rus LLC (OMCB Rus) to 'A-'.

The rating upgrade reflects the bank's improved financial performance last year, strong capitalization and liquidity metrics, favourable equity structure and good loan book. NRA note, in particular, the considerable reduction of nonperforming loans, small proportion of rolled-over loans, maintained high loan quality, good loan collaterization and adequate provisioning level.

NRA also note the bank's consistently strong market position in Orenburg Oblast, strategic partnership relations with local municipal authorities and conservative risk management policy.

The rating is constrained by the modest rate of improvement of OMCB Rus's key financial performance metrics, weak funding base diversification with retail depositors accounting for more than 76% of total funds and high exposure to the largest borrowers (20 top borrowers account for more than 27% of total loans).