OREANDA-NEWS. RusRating has assigned a credit rating to the bank KB Puls Stolitsy. The rating is "CCC" on the international scale and "B" on the national scale, in both cases with a stable outlook.

The rating is based on a stable core client base and a high net interest margin.

Constraining factors include the modest scale of the Bank’s operations; above-average sensitivity to credit risks; and high legal and reputation risks arising from a legal dispute involving a senior Bank executive.

About the Bank

KB Puls Stolitsy is a smaller private-sector Moscow bank with an operating office in Yaroslavl. The Bank is owned by a group of private individuals, most of whom play a role in operational management. Its client base is limited and presumably built around the business ties of its owners and their partners. Retail deposits are the main source of funds and asset-side operations centre on client loans, of which roughly two thirds take the form of retail financing.

Capital is sufficient and of good quality. External funding draws mainly on retail balances, whose stability is judged satisfactory. Asset quality is likewise rated satisfactory based on analysis of the loan book; exposure to large-scale credit risks is elevated in the case of corporate borrowers. Profitability is weak due to pressure from operational and administrative costs, but the interest margin is high. Negative financial results in 2014 reflect a significant downward re-evaluation of foreign currency balances. Overall risk sensitivity is high. Liquidity is sufficient.