RAEX (Expert RA) assigned Raiffeisenbank the highest credit rating

RAEX (Expert RA) assigned Raiffeisenbank ruAAA credit rating, with the stable outlook.

According to the Agency, the highest credit rating of the bank is due to its strong business profile, high capital adequacy and operating efficiency, adequate liquidity position, as well as systemic importance for the Russian banking system and high significance for the parent group.

The high capital adequacy level, according to RAEX (Expert RA) estimates, allows the bank to withstand the complete depreciation of more than 8% of loan debt without violating statutory ratios. As of February 1, 2018, the capital adequacy ratio Н1.0 was 13.5 percent with a minimum acceptable level of 8%, the capital adequacy statutory ratio Н1.2 was 10.3% with a threshold value of 6%.

In addition, the Agency noted the high ability to generate capital and operational efficiency of the bank, which are due to the high level of credit risk management and low cost of funds raised. The average return on equity (ROE) value of the bank for profit before tax according to the IFRS for 2014–2016 is 23.5%

Expert RA expert estimates the quality and diversification of Raiffeisenbank’s assets higher than the average for the loan portfolio of the entire banking system.

Another key factor that had a positive impact on the rating level was the high business profile rating, which reflects the bank’s leading positions in key areas of activity and its systemic significance for the Russian banking market.

According to the Agency estimates, the use of Raiffeisen Group’s techniques and international practice allowed the bank to form a strong system of corporate governance, risk management and compliance.

RAEX (EXPERT RA) is the second rating of Raiffeisenbank according to the national scale. For the first time, AAA national credit rating was assigned to the bank last summer by AARA Rating Agency.