The credit rating of RosDorBank (hereinafter, RDB or the Bank) is determined by the limited business profile assessment, adequate capital adequacy assessment, critical risk profile, and adequate funding and liquidity position.
RDB is a small (in terms of assets) Moscow-based bank that focuses on servicing corporate clients in the SME segment.
KEY ASSESSMENT FACTORS
The limited business profile assessment (bb) reflects the Bank’s limited share in the Russian banking system, coupled with relatively poorly diversified operating income. The assessment of RDB’s corporate governance system is comparable with that of other regional banks.
RDB’s strategy focuses on SMEs, including those operating in the construction industry, where the Bank boasts extensive experience and deep expertise in various construction industry segments (including road construction), the transportation sector, and related machine-building industry segments. The Bank also intends to develop leasing, factoring, and B2B2B products. In addition to the above competencies, RDB’s development model involves active use of the business relationships and connections of its multiple shareholders, which greatly contributes to client loyalty.
Adequate assessment of capital adequacy. Regulatory ratios are satisfied with a margin (the N1.2 ratio was 10.18% as of January 1, 2025), while the Bank regularly pays dividends and periodically receives capital injections from owners. The averaged capital generation ratio (ACGR) for 2019–2023 exceeded 50 bps. ACRA’s stress test shows that the Bank is able to withstand growth of the cost of risk by 300–500 bps without violating capital adequacy standards.
The Agency notes that average CTI (cost-to-income) ratio has declined slightly, while the NIM (net interest margin) is comparable to that of peer banks.
Critical risk profile assessment. ACRA notes that the share of non-performing and potential non-performing loans is relatively stable, while the coverage of Stage 3 loans is only around 59%.
The risk profile is further pressured by the volume of loans granted to the construction and real estate sector, which, in the Agency’s opinion, is sensitive to external shocks and has structurally high credit risks.
The share of the 10 largest groups of borrowers has slightly decreased and now accounts for just under a third of the Bank’s loan portfolio, which is similar compared to Russian peer banks.
The quality of the portfolio of securities and interbank lending is acceptable.
Adequate funding and liquidity assessment. The Bank has a short-term liquidity surplus in both ACRA’s base case and stress scenarios. The long-term liquidity shortage ratio is assessed as adequate. The Agency notes the moderate concentration on the funds of the largest group of creditors and the 10 largest groups of creditors in the Bank’s liabilities. Funding sources are also diversified.
key assumptions
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Maintaining the current business model within the next 12 months;
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Maintaining the N1.2 ratio above 9% within the next 12 months thanks to, among other things, capital injections from the Bank’s shareholders;
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Maintaining the five-year ACGR above 50 bps.
Potential outlook or rating change factors
The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.
A positive rating action may be prompted by:
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Significant improvement of the risk profile, including a decline of the share of non-performing and potentially non-performing loans;
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Decline in lending to high-risk sectors relative to Tier 1 capital;
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Higher N1.2 capital adequacy ratio.
A negative rating action may be prompted by:
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Sustainable decline and stabilization of N1.2 at below 9% over the 12-month horizon;
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Actual or expected decline of the five-year ACGR below 50 bps;
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Sustainable increase in the concentration on the funds of the 10 largest groups of creditors or the largest group of creditors;
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Actual or expected three-year average cost-to-income ratio exceeding 75%.
rating components
Standalone creditworthiness assessment (SCA): bb-.
Adjustments: none.
Support: none.
issue ratings
There are no outstanding issues.
regulatory disclosure
The credit rating has been assigned to RosDorBank under the national scale for the Russian Federation based on the Methodology for Assigning Credit Ratings to Banks and Bank Groups under the National Scale for the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency Within the Scope of Its Rating Activities.
The credit rating of RosDorBank was published by ACRA for the first time on April 10, 2018. The credit rating and its outlook are expected to be revised within one year following the publication date of this press release.
The credit rating was assigned based on data provided by RosDorBank, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of RosDorBank and the financial statements of RosDorBank drawn up in compliance with the requirements of the Bank of Russia. The credit rating is solicited and RosDorBank 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 RosDorBank. No conflicts of interest were discovered in the course of credit rating assignment.
