Moody’s Investors Service upgraded Vozrozhdenie Bank’s bonds rating to Baa2

31 January 2018

Moody’s Investors Service upgraded bonds ratings from Baa3 to Baa2.

Moody’s Investors Service upgraded bonds ratings from Baa3 to Baa2. The bonds were issued by Vozrozhdenie Bank’s SPV within the framework of the third and fourth mortgage portfolio securitization transactions. This was a result of the last week’s upgrade of local-currency debts and deposits rating from Baa3 to Baa2, and a change of Russia’s sovereign credit rating outlook from Negative to Positive.

“Low LTV ratios, availability special-purpose contingency fund, provisions coverage from the Agency for Housing Mortgage Lending (AHML) as well as the high quality of Vozrozhdenie Bank’s mortgage portfolio get our transactions the recognition from financial community and investment grade level ratings, i.e. higher than sovereign ratings. It is hard to overestimate the contribution of the Bank’s Retail Division that worked closely with the AHML at initial stage of this instrument creation and participated in the development of current standards becoming one of the leaders in the securitization market,” commented Mark Nakhmanovich, the Chairman of the Management Board.

Vozrozhdenie Bank has utilized securitization to optimize its funding structure and raise additional resources to mortgage lending development since 2011. The Bank has been engaged in mortgage business for more than 15 years successfully going through the challenges of 2008 crisis and becoming an integral part of current business model with well-established customer relations in regions and deliberate pricing policy.

As of 2017 year end the Bank kept its presence in in TOP 15 Russia’s banks in terms of mortgage lending. In December, 2017 Vozrozhdenie Bank received the acclaimed Cbonds Awards 2017 for the Best Primary Securitization Bond Deal at the XV Russian Bond Congress. Current product range of Vozrozhdenie Bank comprises extensive list of mortgage programs with high market demand. In 2018 the Bank plans to ramp up mortgage lending and increase its loan portfolio.

S&P Global Ratings has changed Vozrozhdenie Bank’s ratings to “B / B”
Moody’s Investors Service changed Vozrozhdenie Bank’s ratings