EUROCOMMERCE Bank PJSC's Credit Rating Lowered to ‘BB ’, Outlook Negative
OREANDA-NEWS. October 30, 2015. National Rating Agency has lowered its national scale credit rating on EUROCOMMERCE Bank PJSC (PAO Commercial Bank ‘EUROCOMMERCE’) to ‘BB+’ with a negative outlook. The ‘BBB’ national scale credit rating had been originally assigned in February 2012. On February 5, 2015, the credit rating was affirmed at this level with a negative outlook.
The rating was downgraded due to the bank's difficulties in making payments, as well as a significant outflow of funds from corporate clients and unprofitable activities as of the reporting date. The Agency notes the extremely high proportion of individuals funds in the structure of liabilities (93% of the borrowed funds) and inadequate structure of assets.
EUROCOMMERCE Bank PJSC (formerly Caucasian Bank for Reconstruction and Development) was founded on April 20, 1992, in Nalchik (Kabardino-Balkaria). In September 2010, the bank changed its registration and moved the head office to Moscow. The bank has the license of the Bank of Russia for banking operations in rubles and foreign currency with legal entities and individuals. Since February 2005, the bank is a party to the deposit insurance system (№623), and is a member of the Association of Russian Banks and the Moscow Entrepreneurs' Association.
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