RusRating raises Khanty-Mansiiski Bank Otkritie credit rating
OREANDA-NEWS. October 09, 2015. RusRating has raised the credit rating of Khanty-Mansiiski Bank Otkritie from "AA" to “AA+” on the national scale and from "BBB" to “BBB+” on the international scale, in both cases with a stable outlook.*
The rating increase reflects completion of the key stages of the Bank’s integration into the FC Otkritie group, a substantial reinforcement of its market positions, and increased lobbying capacity in both business and political circles.
The rating itself is based on the Bank’s systemically-important role in the Khanty-Mansiiski Autonomous Region (KMAR/Yugra); financially-strong shareholders and membership in a major banking group; and an established market presence at the national level.
Constraining factors include minimal transparency with respect to the non-bank interests of KMBO's controlling shareholders, moderate realisation of the Bank’s potential (relative to its systemic importance), and weak earnings.
About the Bank
Khanty-Mansiiski Bank Otkritie (KMBO) is a major national bank (one of Russia's top fifteen by assets) created in November 2014 from a merger of three banks: Khanty-Mansiiski Bank, the largest credit organisation in Tyumen region, Moscow-based Bank Otkritie and Novosibirsk Municipal Bank. The parent Otkritie Financial Corporation controls Russia’s largest private-sector banking group. KMBO itself has a well-developed regional service network and within the group focuses on retail and corporate services.
Capital is sufficient and of good quality. Retail and corporate client balances account for the bulk of external funding, with little use made of state-sector resources. Asset quality is judged satisfactory. Earnings financial results are negative due to a low net interest margin and pressure from expenditures on reserve formation. Overall risk sensitivity is moderate. Liquidity is sufficient.
*The ratings are unsolicited
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