According to senior RusRating analyst Elena Nikolayenko, the rating increase reflects the Bank’s successful handling of an economy-wide crisis and continuing healthy asset quality (including minimal credit risks); strong liquidity management; and the general observed stability of its business.

Positive factors include the owners’ commitment to the Bank and substantial financial/political resources; healthy capital adequacy; solid market positions at the regional level; and a stable circle of corporate clients. plus funding and liquidity independent of the interbank market. Constraining factors include reliance on on-call corporate client resources and retail deposits, limited access to long-term liquidity, and risks arising from dependence on non-financial resources.

ABOUT THE BANK

Sarov Business Bank (SBB) is a mid-sized (by assets) private-sector regional bank controlled by Chairman of the Board of Directors Vladimir Kirienko. The Bank operates mainly in the Nizhni Novgorod region and its business is focused on serving a number of larger corporate clients, the retail market and SME loans. Within its home region SBB’s market positions are solid; it works with some state-sector organisations and is well-connected politically at the local level.


ZAO RusRating is an independent rating agency accredited by the National Securities Market Association and whose ratings have been recognised by the Central Bank of Russia. The company was set up in 2001 and is a member of the GlobalRating group, which also includes rating agencies in Kazakhstan (KzRating), Armenia (AmRating) and Azerbaijan (AzeriRating). Its primary services are the provision of credit ratings to banks, leasing and industrial companies, as well as bonds; it also provides analysis of various aspects of the Russian financial sector.