The Analytical Credit Rating Agency (ACRA) has assigned the AAA1 rating with a stable forecast to Raiffeisenbank.
According to the Agency, the credit rating is based on Raiffeisenbank’s best stand-alone credit profile (aaa), high systemic importance for the Russian market, and high probability of extraordinary support from the parent bank.
According to ACRA estimates, the Bank has a strong franchise in key segments of the banking market, is able to generate a stable and high operating income, and enjoys the lowest sensibility to the economic environment.
According to the Agency, Raiffeisenbank has regularly demonstrated high level of the core capital in terms of both international (Tier 1 ratio was 21.7% at the end of March 2017) and Russian (for the 12 months that ended on 31.03.2017, the average H1.2 was above 10%) standards, which makes it possible for the Bank to stand up to a substantial (over 500 bp) rise in credit risk costs without violating the regulatory requirements.
Along with the high business profile and a substantial buffer to absorb losses, the key factors underlying the rating, according to ACRA, were the Bank’s adequate risk profile, strong liquidity position combined with the balanced funding profile, and high probability of extraordinary support from the parent Group.
This is the first time when Raiffeisenbank is assigned a national credit rating. The stable forecast means a high degree of probability that the rating will remain unchanged in the next 12 to 18 months.
AO Raiffeisenbank is a subsidiary of Raiffeisen Bank International AG. Raiffeisenbank ranks 14th among the Russian banks in terms of assets, based on 2016 results (Interfax-CEA). According to the same Interfax-CEA data, AO Raiffeisenbank ranked 10th in terms of liabilities of individuals and 7th with regard to consumer lending.
Raiffeisen Bank International AG (RBI) regards both Austria, where it is a leading corporate and investment bank, as well as Central and Eastern Europe (CEE) as its home market. In CEE, RBI operates an extensive network of subsidiary banks, leasing companies and a range of other specialised financial service providers in 14 markets.
In total, more than 50,000 employees service 16.6 million customers through around 2,500 business outlets, thereof a majority in CEE. Since 2005, RBI’s shares have been listed on the Vienna Stock Exchange.
After the merger of RBI and its former majority owner Raiffeisen Zentralbank Österreich AG (RZB) in March 2017, the combined institute operates — as previously RBI — under the name Raiffeisen Bank International AG. RBI took over all rights, obligations and duties of the transferring company RZB.