Research Update: Russia-Based Gazprombank Affirmed At 'BB+/B' And 'ruAA+' On Bank Criteria Change; Outlook Stable Dec 11
- Language: English
- Published: December 2011
The ratings on Russia-based Gazprombank (GPB) primarily reflect Standard & Poor's Ratings Services' view of the high economic and industry risks that banks operate under in Russia, compared with levels in other countries. The ratings also factor in GPB's "weak" capitalization according to Standard & Poor's risk-adjusted capital (RAC) ratio on the bank. In addition, we take into account that leading gas producer, state-controlled OAO Gazprom (BBB/Stable/A-2) and related companies, and other state-owned companies are providing a material portion of the bank's funding, which exposes funding to concentration risk. In addition, we consider that GPB is exposed to high concentration risk in the loan portfolio and to uneven revenues owing to the moderate contribution from core commercial banking revenues and...
Companies mentioned in this report are: Gazprombank
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