Uralsib high credit rating has been confirmed with outlook downgrading

UFA, 15 July 2015. /Bashinform News Agency, Elvira Latypova/. The RIA Rating rating agency has confirmed the credit rating of Uralsib Bank at 'AA'; the outlook has been changed from "stable" to "negative", according to the agency's website.

The 'AA' rating means that the company belongs to the category of borrowers with very good credit ratings. In addition, due to the significant level of activity and its impact on the country's economy there is high probability of support from the state or large contractors as needed. For example, Uralsib entered the restricted list of banks, for which recapitalization from Deposit Insurance Agency was available worth more than 10 billion rubles - 25% of equity as of 1 January, RIA Rating specifies.

A strong brand, good business reputation, one of the most extensive sales network in the country, good liquidity position were mentioned among the positive factors. Operating expenses cut had a moderately positive impact on the rating.

On the other hand, the pressure on the rating was made by the level of overdue loans in the loan portfolio. During the period from January 1 to June 1, the share of overdue loans increased from 9% to 11.5%. In January-May loss under RAS amounted to 5.7 billion rubles.

Uralsib Bank is one of the leading Russian banks. The authorized capital as of 1 June amounted to 29.8 billion rubles, total assets - 341 billion rubles, the amount of own funds - 40.2 billion rubles. The head office is located in Moscow, the remote central office - in Ufa.