OREANDA-NEWS. National Rating Agency has assigned its national scale ‘BBB+’ credit rating to Kapitalbank JSCB.

The rating is supported by Kapitalbank’s positive growth dynamics, strong liquidity position, and considerably improving capitalization (the equity capital ratio was 40.78% as of July 1, 2015), enhancing the bank’s capacity to lend to large clients (although Kapitalbank’s general lending activity is constrained by the modest Tier 1 and common-equity ratios).

Offsetting these strengths are the bank’s heavy reliance on retail deposits and subordinated corporate deposits, making up the bulk of its funding base, and its poorly developed corporate customer base. Additionally, the loan book quality is viewed as low, despite the small size of overdue loans. We also note the substantial proportion of foreign currency loans and the exposure to investment projects.

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