OREANDA-NEWS. RusRating has lowered the credit rating of OOO KB iMoneyBank from "BBB" to “B” on the national scale and from "BB" to “CCC+” on the international scale, in both cases with a negative outlook.

The rating cut reflects the lack of economic logic in the decision to place one third of assets on Nostro account with a major affiliated bank; the inability to objectively assess a portfolio of third-party claims; and virtually 100% dependence on retail deposits as a source of funds. The rating is also under pressure from a low capital base coupled with negative financial results against the background of a negative net interest margin and the presumably low liquidity of the Bank’s principal counterparty.

The change in outlook (from “stable” to “negative”) reflects RusRating’s belief that the Bank is exposed to high regulatory risk due to its currency use of depositors’ funds.

The rating itself is based on an established market presence in the Bank’s core line of business.

Constraining factors include weak key financial indicators and (in RusRating’s view) limited transparency in the Bank’s financial accounts.

iMoneyBank (formerly AltaiEnergoBank) is a private-sector bank that ranks among Russia's top two hundred by assets. Since 2010 its strategy has focused on developing a retail business, particularly in car loans. In April 2014 control passed to a group of shareholders in Moscow-based Finprombank, including Management Chairman Sergei Perminov and Chairman of the Board Anatoli Goncharov.

Capital is minimally adequate. External funding is highly dependent on retail deposits; re-financing prospects are judged poor under current macro-economic conditions. Balance sheet measures of asset quality are satisfactory, but in RusRating’s view may not reflect the true situation. The Bank reports losses due to a negative net interest margin and heavy expenditures on reserve formation. Reported liquidity is sufficient. Risk sensitivity is high.