Vozrozhdenie Bank : S&P Global Ratings has changed Vozrozhdenie Bank’s ratings to “B+ / B”

Moscow, November 3, 2017: S&P Global Ratings has changed the bank's long-term credit rating from 'BB-' to 'B+'. This happened after the announcement that planned merger with Promsvyazbank was postponed to the next year. At the same time, the bank's short-term credit rating was remained unchanged at 'B'.

Moscow, November 3, 2017: S&P Global Ratings has changed the bank's long-term credit rating from 'BB-' to 'B+'. This happened after the announcement that planned merger with Promsvyazbank was postponed to the next year. At the same time, the bank's short-term credit rating was remained unchanged at 'B'.

'We continue to view Vozrozhdenie Bank's business position as adequate, benefitting from its established customer franchise in the wealthy Moscow region. Therefore, we have not revised our assessment of the bank's 'b+' stand-alone credit profile (SACP),' noted Ekaterina Marushkevich, primary credit analyst at S&P Global Ratings.

'Just like it was 26 year ago, strong relations with retail clients and enterprises are in the core of the bank's strategy and insure sustainability of our business model. V.Bank's excellent financial results prove that. We are sure that the agency will be convinced by stability of our liquid position and capital ratios and revise their decision. In the course of integration with Promsvyazbank we managed to strengthen our competences, optimise investment expenditures and substantially improve our product line. Thereat, the bank continues its development as a stand-alone institution with decades of experience in the sector and high expertise in regional business across our key territories,' commented Acting Chairman of the Management Board Mark Nakhmanovich.

From the rating agency's view, the bank has 'average' funding indicators and 'adequate' liquidity ratios; and earlier the analysts pointed out that Vozrozhdenie Bank's retail deposits base, which accounts for about 70% of total deposits, supports the bank's funding profile. The bank did not experience any material deposit outflows in July and August 2017, when the operating environment for Russian banks became volatile; and the funding currently remains stable. According to preliminary reporting data, during the nine months of 2017 the bank's retail funds grew by 3% to Rub 141 billion.