Moody’s Upgraded Novikombank Rating With a Stable Forecast

Moody’s Upgraded Novikombank Rating With a Stable Forecast

Moody’s international rating agency upgraded Novikombank's long-term deposit rating to Ba3 with a stable estimate forecast.

"The increase in Novikombank's long-term credit ratings reflects the bank’s solvency growth, as well as its ability to make profit, given the increase in the integration of the bank’s operations with its owner, Rostec State Corporation," say Moody's experts.

The agency notes a consistent increase in Novikombank's capital adequacy ratio in 2018. The expansion of the corporate business, which forms the core business of the bank, provides for an increase in interest income and operational efficiency. Moody's analysts point out that Novikombank loans are provided mainly to state-owned companies of strategic importance, therefore the risks of bank assets are limited.

According to analysts’ opinion of Novikombank, Moody's estimates indicate that the financial institution has chosen an effective credit policy and the business model of the fundamental bank of the Russian industry guarantees high quality of customer loan indebtedness.

“At the heart of success is the right choice of a long-term strategy, excellent business reputation and close partnership with Rostec State Corporation. The bank firmly occupied the position of a key participant in Corporation's financial structure, thereby securing funding sources for financing activities and excellent opportunities for placing resources”, comments Novikombank Chairman of the Board Elena Georgieva.

JSCB Novikombank is one of the 25 largest banks in Russia. Provides a full range of banking services in all segments of financial market. The priority area of activity is financing of domestic industrial enterprises of high-tech industries, aviation and the automotive industry. The bank is a professional participant in the securities market and a member of the deposit insurance system.