Standard & Poor's: Bank Uralsib’s poor capitalization affects ratings

27 May 2011 (09:34)

The international rating agency Standard & Poor's reconsidered the rating outlook of Russian Bank Uralsib from Negative to Stable; the bank’s long-term and short-term contractor ratings were affirmed at B+ and B, respectively.

The new rating outlook indicates that the bank’s financial performance has been experiencing less market pressure lately due to the gradual improvement of working conditions at home.

Uralsib cut down on the transactions with the related parties and the quality of its assets tends to be improving now. The pressure on the bank’s liquidity isn’t as strong as it used to be, and the bank has been relying less on the large market funds compared with the other Russian banks in the same rating category. On the other hand, its ratings are still badly affected by the ongoing asset quality problems and low profitability,’ the agency’s analysts explain.

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