Standard&Poor’s affirmed credit ratings of Vozrozhdenie Bank

25 February 2015

Standard & Poor’s Ratings Services has affirmed the long- and short-term credit ratings of Vozrozhdenie Bank at ‘BB-/B’ on the global scale and ‘ruAA-‘ on the Russia national scale as part of revising ratings of Russian banks as well as lowering Banking Industry Country Risk Assessment on Russia and anchor for banks operating in Russia.

“We are glad that in the tough times amid cutting the sovereign rating and stricter assessment of the banking sector Standard & Poor’s has affirmed the credit ratings of Vozrozhdenie Bank. It evidences that we have built a secure business model resistant to macroeconomic shocks and aggravated risks of recession. The loyal client base and sound reputation in the key regions of presence are our core strengths that support the business development and help to maintain a healthy balance sheet structure”, commented Andrey Shalimov, Deputy Chairman of the Management Board of Vozrozhdenie Bank.

“Although we believe that financial and/or business profiles of Vozrozhdenie Bank could be negatively affected by deteriorating operation environment, we believe that Vozrozhdenie Bank’s business profile is set to be more sustainable to those of peers within similar risk category, benefiting from its well established position in the relatively wealthy Moscow region, adequate business mix, and less aggressive growth targets than peers’”, commented Sergey Voronenko, Associate Director of Standard & Poor’s Ratings Services.

The analysts have revised their assessment of the bank’s business position to ‘adequate’ from ‘moderate’, retaining the ratings intact. The negative outlook reflects the increasing challenges V.Bank may face as a result of the difficult economic situation, notably for its profitability, liquidity and credit risks. At the same time the outlook assumes no material changes in the bank’s strategy or risk appetite caused by ownership changes.

Vozrozhdenie Bank has held the meeting of the Board of Directors
Moody’s Investors Service has downgraded Vozrozhdenie Bank ratings amid deteriorating operating environment