08 June 2004 10:19
MOODY`S ASSIGNS E+/B1/NP RATINGS TO PROMSVYAZBANK
LIMASSOL. June 7 (Interfax) - Moody's Investors Service has assigned to Promsvyazbank of Russia an E+ Financial
Strength Rating (FSR), and ratings of B1/NP for long-and short-term foreign currency deposits, the agency said in a
press release Monday.
All ratings carry stable outlooks. According to Moody's, the ratings assigned to Promsvyazbank take into account
the relative size of the bank -- one of the top 20 in the country -- and its well developed business franchise. The bank
has grown rapidly over the last few years, driven primarily by expanding lending operations. Moody's notes that if
such growth is not properly managed, it could compromise the asset quality and could weigh negatively on the bank's
ratings, although the quality of the loan book has been good to date. Alongside its overall lending expansion,
Promsvyazbank has also been actively lending to related parties, another key element that constrains the ratings. The
ratings reflect the bank's credit standing on a standalone basis and do not take into account any outside support,
either from the government or from the owners.
At the same time, Promsvyazbank's ratings are supported by its solid financial performance over the past years,
the clear strategic vision of its management, and by its ability to successfully explore the market segment it is active
in, adds Moody's.
[Interfax] |
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