OREANDA-NEWS. RusRating has assigned a credit rating to OAO AKB Moscow Industrial Bank. The rating is "AA-" on the national scale and "BBB-" on the international scale, in both cases with a stable outlook.

The rating is based on established market positions at the national level; a stable client base; historically minimal realised credit risks; official support under partnership agreements with regional governments; and low sensitivity to currency risk.

Constraining factors include elevated exposure to large-scale credit risks and affiliated parties; external funding concentrated on retail deposits; a low capital base; financing extended to construction and real estate development companies; a low net interest margin; and elevated liquidity risks.

About the Company

Moscow Industrial Bank is a private-sector Moscow bank with an established branch network that ranks among the country’s top-50 by assets. Its shareholders include a wide range of both corporate entities and private individuals, with a key role played by Bank President Abubakar Arsamakov, who together with his relatives controls 13.52% of equity. Operations centre on the provision of integrated corporate services, with an emphasis on firms in the construction and real estate sectors.

Capital adequacy is low but capital quality is judged healthy. External funding consists mainly of retail deposits; liabilities are trending upward and their stability is rated satisfactory. Asset quality is likewise rated satisfactory, based on an assessment of client loans; this reflects above-average exposure to the construction industry and a high percentage of restructured loans coupled with a minimal delinquency ratio. Profitability is low, as is the net interest margin. Current liquidity is sufficient but risks to liquidity appear elevated given the term structure of the balance sheet. Overall risk sensitivity is moderate.