Summary: Promsvyazbank JSCB Oct 07

Standard & Poors, October 2007

Abstract
The ratings on Promsvyazbank JSCB (PSB) reflect its weak capitalization pressured by aggressive asset growth; still-high, single-party concentrations in loans and deposits; weak funding structure with high reliance on market-sensitive funding; and still developing risk management system, which requires improvements given the bank's targeted business scope. These weaknesses are somewhat mitigated by the bank's good profitability, focused strategy in commercial banking, 15.3% ownership by Commerzbank AG (A/Stable/A-1), which should be positive for PSB's funding and IT systems; and committed shareholders ready to support the bank with new capital if necessary. With total assets of RUR220 billion ($8.6 billion) at June 30, 2007, PSB ranks among the top-15 Russian banks. Headquartered in Moscow, PSB is rapidly expanding its regional coverage, which...

Companies mentioned in this report are:
- Promsvyazbank OJSC
- Commerzbank AG

Action: Review

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included.

- Promsvyazbank OJSC
- Commerzbank AG

Customers who bought this item also bought

• Russia: Vocational Education Market. Analysis and Forecast to 2017
• Russia: Pre-School and Primary Education Market. Analysis and Forecast to 2017
• Transportation & Urban Investment Finance Review 2012/13
• Russia Defence and Security Report Q3 2013
• Crises in Russia
• Russia Defence and Security Report Q2 2013
• Homeland Security Market in Russia to 2022: Market Brief
• C2/C4ISR Market in Russia to 2021: Market Brief
• Military Aircraft Market in Russia to 2021: Market Brief
• Russia Defence and Security Report Q4 2011