OREANDA-NEWS. National Rating Agency has affirmed its national scale 'AA' credit rating on Northern Sea Route Bank OJSC (SMP Bank).

The rating is supported by the owners' commitment to developing SMP Bank, as well as the bank's robust capital position, prudent underwriting policies and strong liquidity metrics.

The rating is constrained by the risks associated with restrictions imposed on the bank and affecting its retail business (card services), as well as a range of cross-border operations. At the same time, SMP Bank has joined the National Payment Card System and its cards are now accepted across Russia.

NRA note the increase in low margin loans to Russian regions in the bank's loan portfolio and the reduction of commercial loans during the period under review. We also note the interest margin decrease (currently typical of the Russian banking sector), which has not, however, prevented the bank from posting a positive financial result for 1H 2015.