OREANDA-NEWS. June 10, 2015. National Rating Agency has affirmed its ‘AA-’ national scale credit rating on RGS Bank PJSC. The outlook for the rating is negative.

The rating is underpinned by RGS Bank’s strong position in the Russian financial market. The bank has an adequate liquidity position, as its liquid assets are sufficient to meet potential needs. NRA notes the bank’s strong corporate governance practices and up-to-date organizational structure that helps minimize operational and business risks.

The negative rating outlook reflects the lower asset quality and growing nonperforming loans, reduced interest margin and interest risk materialization that has caused the 1Q 2015 loss. In its rating analysis, NRA took into account the current operating environment and noted the bank’s slowing growth and deteriorating borrower quality.