OREANDA-NEWS. RusRating has assigned a credit rating to AO SMARTBANK (Moscow). The rating is "CCC+" on the international scale and "B" on the national scale, in both cases with a stable outlook.

The rating is based on shareholder support (including a friendly client base) and solid ties to key corporate clients (major self-regulatory organisations).

Constraining factors include the Bank’s modest size, risks arising from dependence of the stability of its owners’ business ties; poor financial results; above-average regulatory and reputation risks; and risks linked to changes in ownership, management and business activity.

Smartbank is a smaller private-sector Moscow bank set up in 2001. According to the Bank, its principal shareholders are Chairman of the Board Alexander Galkin and Board member Agustin Morales-Escomillia. The Bank has a modest branch network. Its principal business is providing loans and other services to corporate clients, particularly major non-profit self-regulatory organisations. Retail activity centres on deposits. In September 2014 the Central Bank imposed six-month restrictions on certain types of new retail funding in connection with under-assessed credit risks.

Capital is sufficient and its quality is judged healthy. Corporate client resources make up the bulk of liabilities and are concentrated by individual (major) creditor; volatility is high but the client base is broadly stable. Given reasonably good scope for anticipating client cash flows, overall stability is judged moderate. Asset quality is rated satisfactory, based on an assessment of client loans. Profitability is low due to pressure from operational and administrative costs against the background of a strong interest margin. Positive financial results in the first quarter of 2015 were made possible by an unremunerated contribution from shareholders. Overall risk sensitivity is moderate. Current liquidity is sufficient and risks to liquidity are modest.