OREANDA-NEWS. National Rating Agency has lowered its national scale credit rating on Business-To-Business Commercial Bank LLC (B2B) to ‘BB-’. The outlook for the rating is negative. The negative outlook may materialize after the analysis of B2B’s latest financials. The bank was assigned NRA’s national scale credit rating of ‘BBB’ on Oct. 2, 2014.

One of the reasons behind the rating downgrade is loan quality deterioration that required additional provisioning and, consequently, brought the bank’s equity down to RUB248.1 million (as of Aug. 1, 2015), or below the regulatory minimum of RUB300 million. NRA also notes B2B’s operating loss for June 2015, customer activity decline, and loan quality deterioration compared with 1H 2015.

B2B was established, originally under the name “Yadrinsky CB”, as a limited liability partnership on Dec. 3, 1990. The bank is licensed by the Central Bank of Russia (CBR) to provide local and foreign currency banking services to corporate clients and individuals (license no. 1060). It is a member of different professional societies and associations, and has been a Deposit Insurance System member bank since Nov. 25, 2004 (reg. no. 221). B2B is an authorized banking service provider for the B2B-Center unified e-trade system.

NRA’s analytical products, including ratings and the contents of this press release, are statements of NRA’s independent opinion as of the date they are expressed and not statements of fact or recommendations to make any investment decisions or conduct any stock market transactions. NRA is not responsible for any results obtained from the use of opinions and/or information contained in this press release.

While NRA has obtained information from sources it believes to be reliable, NRA does not guarantee that this information is perfectly correct, complete and accurate, as it does not perform an audit or undertake any duty of due diligence or independent verification of any information it receives.