OREANDA-NEWS. National Rating Agency has assigned its ‘A’ credit rating to Municipal Savings Bank Desk (Gorodskaya Sberegatelnaya Kassa) JSC (MSBD) microfinance bank. The outlook for the rating is Stable. It is the first time that MSBD is rated by NRA.

MSBD’s credit rating reflects its growing loan portfolio and sustainable asset quality, increasing authorized capital, good capitalization and strong liquidity position, with equity adequacy and liquidity ratios comfortably above the regulatory minima, as well as the bank’s good information disclosure practices and experienced personnel. The rating factors in MSBD’s adequate risk management system, which is risk management system will evolve commensurate with the scale and nature of the bank’s business.

The rating is constrained by the bank’s low profitability, lack of IFRS financials, and the bank’s short track record of operations in the emerging market segment.

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