OREANDA-NEWS. RusRating has lowered the credit rating of OAO Gazenergobank from "BB" to “CCC” on the international scale and from "BBB+" to “B-“ on the national scale, in both cases with a stable outlook.

According to the agency, the rating cut reflects increased regulatory and reputation risks affecting the parent ProbusinessBank and a substantial rise in credit risks following a large volume of asset-side transactions with the parent bank.

The rating is based on a moderately well-developed market presence at the regional level, along with continuing moderate sensitivity to credit risks.

Constraining factors include high credit risks; high regulatory and reputation risks; and the limited diversification of both asset- and funding-side operations.

About the Bank

Gazenergobank is a private-sector regional bank that ranks among the top two hundred in Russia by assets. Set up in 1995, it is the largest local player in Kaluga region and a member of the LIFE group headed by ProbusinessBank, one of Russia's top one hundred credit organisations; the group has loan offices and other service locations in several regions of the country and includes six subsidiary banks plus Life Factoring and the real estate developer Probusiness-Development. Gazenergobank’s own operations remain focused on the retail segment but its corporate business is gradually expanding, with an emphasis on services for small and mid-sized regional enterprises.

Capital is sufficient and its quality is rated favourably. External funding has been solid in the past but is dependent on retail balances. Asset quality is rated satisfactory. Earnings are healthy but trending downwards. Overall risk sensitivity is moderate. Current liquidity is sufficient.