Press Releases / 11.05.2016
Press Release as of 11.05.2016
AK&M Rating Agency has affirmed the national scale credit rating of JSC Coalmetbank (license no. 2997) at 'B++', raising the tier from 2 to 1. The outlook is stable.
The higher sub-level reflects appreciable improvements in the quality of loans receivable, as evidenced by a more than twofold reduction in overdue debt this year (from 10.3% to 4.7%). In absolute terms, the bank increased its loan portfolio in this period by 24.5% to RUB 899.7 million as of April 1, 2016. The credit rating is also supported by high provisions for the bank's loans (12.4%) substantially exceeding the level of overdue loans.
We appreciate the of credit institution's profitable operations. In the first quarter of 2016, the bank earned RUB 34.7 million in net profit. The bank's financial result has been positive this year and demonstrates substantial improvements in its dinancial performance compared with 2015.
AK&M Rating Agency assigned a credit rating to JSC Coalmetbank for the first time on August 14, 2009. The last rating action in relation to the Bank was taken on February 15, 2016. All rating action announcements are available on the akmrating.ru website.
For estimation purposes, we completely rely on the reliability of information provided by the Bank. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors.
This press release is based on the monitoring results of the current credit rating assigned to JSC Coalmetbank and the Credit Rating Methodology for Banks and their Debt Instruments rev. November 27, 2015.
The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank'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.
AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993.
AK&M Rating Agency
Ul. Gubkina 3, Moscow, Russia
Phone no. (495) 916-70-30, fax no.: (499) 132-69-18.