Expert RA Changes Avtogradbank Creditworthiness Rating
OREANDA-NEWS. 'Expert RA' rating agency changed 'Avtogradbank' rating outlook from stable to negative. The creditworthiness rating remained unchanged at А+, which means very high credit solvency, the third sub-level.
The outlook change reflects the uncertainty related to the arrest of the Bank's main beneficiary. On the one hand, this fact will not, in our opinion, have a significant impact on the current operations due to the Bank's professional management, the low share of loans to the companies related to the shareholder and the significant liquidity reserve. On the other hand, reputation risks for the Bank increase considerably, which may pressurize its financials in the mid-term. Moreover, we note the overall operating environment deterioration for regional banks.