Standard & Poor’s Rating Service has put Vozrozhdenie Bank’s ratings on CreditWatch Negative

24 August 2015

Standard & Poor’s Rating Service has put Vozrozhdenie Bank’s ratings on CreditWatch Negative on more uncertainty of its business strategy. Currently the bank’s ratings are affirmed at ’BB-’ global scale and ’ruAA-’ national scale rating.

Placing the bank’s ratings into CreditWatch reflects the view of the rating analysts that change in the bank’s ownership could lead to marked changes in the bank’s strategy or risk appetite.

“Vozrozhdenie Bank’s business profile is set historically to be more sustainable than those of most midsize banks in Russia, based on its well-established position in the relatively wealthy Moscow region, in addition to its adequate business mix and less aggressive growth targets than peers’. We forecast that these ownership changes, if they distract management from its historically sound business focus, could weaken the bank’s business position and create uncertainty that could complicate decision-making”, commented Sergey Voronenko, Associate Director of Standard & Poor’s Ratings Services.

“We understand the concerns of the rating agency and hope that lower uncertainty on shareholder structure in the nearest future could waive the worries about the bank’s future development. We are glad to note appreciation of our resilient business model, risk management and loyal client base and plan to dwell further on our key strengths”, noted Andrey Shalimov, Deputy Chairman of the Management Board.

The ratings could be affirmed if potential changes in the ownership structure do not markedly affect the bank’s strategy or risk appetite.

The long-term ratings could be lowered if the bank’s funding, liquidity profile or capital position unexpectedly deteriorates. A negative rating action could also stem from material deterioration of the bank’s business stability or significantly increased risk appetite.

Vozrozhdenie Bank will publish its H1 2015 IFRS results and hold a conference call for investors on August 25
Vozrozhdenie Bank Board of Directors held a meeting