Press Releases / 05.08.2014

Press Release as of 05.08.2014

Status-A LLC

CJSC AK&M Rating Agency assigned an 'A' national scale credit rating (tier 3) to Status-A LLC, with a stable outlook.


CJSC AK&M Rating Agency assigned an 'A' national scale credit rating (tier 3) to Status-A LLC, with a stable outlook.

The 'A' rating indicates that the Company is highly creditworthy. The risk of a failure to meet obligations in time is low, the full or partial debt restructuring risk is minimal.

Status-A LLC positions itself in the Russian market as an investment holding company focused on securities transactions, financial intermediation and asset management services. At the same time, Status-A is the majority shareholder of RUSSLAVBANK (Commercial Bank Russky Slaviansky Bank CJSC) holding a 75.5% equity stake, actually being the nominal shareholder in the interests of  Abdulzhelil Abdulkerimov, the ultimate beneficiary of the credit institution.

The Company's credit rating is essentially supported by its low debt burden, high and fast-growing capital.

Status-A LLC occasionally resorts to short-term borrowings (including capital raised from its subsidiary financial entity) to replenish its operating assets and to effect current payments. The Company always meets its obligations to repay such loans in full and in time. The ratio of short-term debt balance as of the end of the year to retained earnings in 2010-2013 never exceeded 63% (26% as of January 1, 2014), an evidence of the Company's low debt burden and strong liquidity position.

For the last three years, equity capital of Status-A LLC has grown almost 300 times reaching RUB 2,055 million as of January 1, 2014, the authorized capital accounting for ca. 99% of that amount. The share of capital in the Company's liabilities as of the same date is 99.7%, indicating almost complete financial independence.

We regard the high probability of financial support from the Company's owner as an additional positive rating driver. Besides, AK&M Rating Agency certainly appreciates the ongoing turnaround process for RUSSLAVBANK improving the market capitalization of Status-A LLC.

At the same time, the Company's rating is constrained by the narrow range of financial instruments, the absence of licenses to act as a professional securities trader, the low and still weakening profitability.

Financial investments of Status-A LLC are highly concentrated; 90% of them have been effected in shares of RUSSLAVBANK (Commercial Bank Russky Slaviansky Bank Closed Joint-Stock Company) that are not listed or traded in the organized equity market. This is a major restriction on the upside potential of the investment company's profitability. The absence of licenses for dealing, brokerage and asset management activities is also narrowing the Company's business opportunities.

As a result, the Company's profitability and return ratios are fairly low and further decreasing. From 2.88% at the end of 2011, the ROE (ROA) ratios went down to 0.26% at the end of 2012, 0.06% in late 2013. At the same time, the size of the buffer capital is not as critical for Status-A LLC as it is for companies investing profits in the development of production, modernization of fixed assets and other CAPEX-related improvements, which we believe to be an offsetting factor.


Status-A LLC has been actively developing its investment business since 2010. The company is registered at the place of its subsidiary bank RUSSLAVBANK (Prospekt Mira 3, bld. 3).

As of January 1, 2014, the Company's authorized capital totaled RUB 2,031.1 million. The ultimate beneficiary of Status-A is Abdulzhelil Makhmudovich Abdulkerimov, Chairman of the Board of Directors and a shareholder of RUSSLAVBANK.

This press release is based on the Statement of assignment of a credit rating to Status-A LLC.


The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Company's creditworthiness and shall not be construed as a recommendation to purchase or sell securities, or to lend funds.

AK&M Rating Agency shall not be held liable for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

CJSC Analysis, Consulting and Marketing Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.


CJSC AK&M Rating Agency

ul. Gubkina 3, Moscow, Russia

Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.