OREANDA-NEWS. RusRating has assigned a credit rating to SovCo Capital Partners B.V. The rating is "BBB-" on the international scale and "AA-" on the national scale, in both cases with a stable outlook.

The rating is based on the high value of the Company’s assets.

Constraining factors include currency risk, investments centred on a single major group of companies, and negative financial results.

About the Company

SovCo Capital Partners B.V. is a Netherlands-registered company controlled by a group of Russian business people, including key managers at Sovcombank, which is under its control. Its principal line of business is financial investments. Assets consist mainly of Sovcombank shares and bonds issued by affiliated companies, as well as a loan to the same bank. Capital accounts for a large portion of liabilities, supplemented by obligations to affiliated companies. Liquidity is sufficient.

Sovcombank is a larger private-sector bank and one of Russia’s top ten regional banks by assets. The Bank is wholly-owned by its own top managers in partnership with major Russian businessmen. Retail services are its priority line of business, with an emphasis on loans to borrowers in higher age categories. Sovcombank has a wide service network that covers most regions of the country. Strategy calls for the further development of retail services, which in February 2014 led to the acquisition of ZAO GE Money Bank; operations were fully integrated by the end of June.

Capital is sufficient; its quality and stability are judged healthy based on the Central Bank’s Basel III standards. External funding is dependent on retail deposits but its overall stability is rated favourably in the light of past trends. Asset quality is judged satisfactory. Earnings performance is healthy and the impact of variable factors is moderate. Overall risk sensitivity is likewise moderate. Liquidity is sufficient.