ACRA has assigned the “Rating under review: developing” status to the credit rating of JSCB NRBank (JSC) (hereinafter, NRBank, or the Bank) due to the Agency receiving information about a change to the ownership structure and the need for additional analysis of the impact of this fact on the Bank’s financial standing.
The current credit rating of NRBank — BB(RU) — was based on the Bank’s satisfactory capital adequacy position, weak risk profile assessment, adequate funding and liquidity assessment, and a moderately low business profile assessment. The rating also took into account the moderate level of extraordinary support the Bank could receive from its supporting entity.
The “Rating under review: developing” status reflects the Agency’s need to receive information about the new owner’s strategic plans with regard to NRBank and carry out additional analysis of this information, as well other significant information, to clarify the Bank’s standalone creditworthiness assessment (SCA) and credit rating.
POTENTIAL OUTLOOK OR RATING CHANGE FACTORS
The “Rating under review: developing” status indicates a variety of trends: the rating may stay unchanged, be upgraded, or be downgraded.
Removal of the “Rating under review: developing” status and upgrading the credit rating may be prompted by:
– Improved assessment of support from the new owner or upgrade of the SCA.
Removal of the “Rating under review: developing” status and affirming the credit rating may be prompted by:
– Assessment of support from the new owner at a level that is sufficient to confirm the rating, while maintaining the SCA.
Removal of the “Rating under review: developing” status and downgrading the credit rating may be prompted by:
– Downgrade of the assessment of support from the new owner or a lower SCA.
rating components
SCA: b+.
Adjustments: none.
Support: the previously assigned rating took into account the moderate likelihood of extraordinary support from the shareholder. Given this support, the Bank’s credit rating was set at BB(RU).
issue ratings
There are no outstanding issues.
regulatory disclosure
The credit rating has been assigned under the national scale for the Russian Federation based on the Methodology for Credit Ratings Assignment to Banks and Bank Groups under the National Scale for the Russian Federation, Methodology for Analyzing Rated Entities Associated with a State or a Group, and the Key Concepts Used by the Analytical Credit Rating Agency within the Scope of Its Rating Activities.
The credit rating of JSCB “NRBank” (JSC) was published by ACRA for the first time on December 9, 2021. The credit rating and its outlook are expected to be revised by December 1, 2023.
The credit rating was assigned based on data provided by JSCB “NRBank” (JSC), information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the consolidated IFRS financial statements of JSCB “NRBank” (JSC) and the financial statements of JSCB “NRBank” (JSC) drawn up in compliance with Bank of Russia Ordinance No. 4927-U dated October 8, 2018. The credit rating is solicited and JSCB “NRBank” (JSC) participated in its assignment.
In assigning the credit rating, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to JSCB “NRBank” (JSC). No conflicts of interest were discovered in the course of credit rating assignment.
