Investtorgbank's Credit Rating Lowered
OREANDA-NEWS. National Rating Agency has lowered its national scale credit rating on Investtorgbank PJSC JSCB to 'ВВВ'. The outlook for the rating remains Negative. On Aug. 19, 2010, the bank was assigned NRA's credit rating of 'A+', which was raised to 'AA-' on Sept. 21, 2011, affirmed with a negative outlook on May 13, 2015 and lowered to 'A+'/ Negative on Aug. 20, 2015.
The rating downgrade reflects both the negative factors outlined in NRA's media release of Aug. 20, 2015, and the substantial reduction in Investtorgbank's liquid assets after the latest reporting date in the context of the fall in its corporate current accounts and deposits accompanied by growing reliance on retail deposits. The bank's N2 immediate liquidity ratio has decreased, but all of the liquidity ratios remain comfortably above the regulatory minima. At the same time, the capital adequacy ratio is getting low (N1 = 10.44% as of Aug. 1, 2015).
NRA monitors the bank's financial performance on a continuing basis, taking into account the certainty regarding the timing and mechanisms of its proposed recapitalization. NRA will take appropriate rating action in case of material changes in the above factors or other key indicators of the bank's performance.
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