OREANDA-NEWS. National Rating Agency has affirmed its national scale ‘BBB’ credit rating on Orange Bank LLC. The outlook on the rating is negative.

Key consideration behind the negative outlook are the bank’s losses for the five months of 2015, growing loan loss reserves, decreasing customer deposits (a trend observed both this year and throughout the whole period under review), and the much greater diversion of capital (due to an increase in fixed assets and current inventory value after entering a loan guarantee on the bank’s books).

In affirming its rating on Orange Bank LLC, NRA notes the bank’s strong liquidity position (with actual liquidity ratio being comfortably above the regulatory minimum), the maintained high loan quality (more than 85% of issued loans falling are in the I and II risk categories, the delinquency growth rate is low, as is the share of renegotiated and restructured loans in total loans ), as well as the reducing single name concentration of liabilities. As before, the rating recognizes the bank’s prudent underwriting and risk management practices.