OREANDA-NEWS. November 8, 2010. According to Elena Nikolayenko, RusRating’s Director of Methodology, the rating increase reflects a decline in the political risks associated with the Moscow administration and consistently moderate sensitivity to credit risks even following the recent crisis.

The rating is based on the capacity of the Bank’s owners to provide support, a steady circle of larger corporate clients, a strong lobbying capacity and political influence at the municipal level, a healthy capital base, a stable liquidity position and professional management. Constraining factors include risks arising from exposure to the construction industry, which accounts for a large portion of the Bank’s business; moderate political risks; and a relatively modest market share.

Mosstroyekonombank (MSEB) is a mid-sized (by assets) Moscow credit organisation, a construction industry specialist and an authorised bank of the City of Moscow, which has historically held a minority stake; its Supervisory Board is chaired by Deputy Mayor V.I. Resin. A controlling interest is held by finance and construction companies formerly affiliated with the non-bank business of Mikhail Gutseriev. MSEB has a modest branch network with a moderate geographic reach. Its market positions are solid and the Bank can draw on established business ties across the Moscow construction industry. It is developing a retail business, including a presence in mortgage loans.