RAEX Points to UMMC’s Problem Spots

UrBC, Yekaterinburg, June 20, 2018. Expert RA/RAEX commented on the key negative factors affecting Koltso Urala Bank’s performance.

The latest report on the bank’s credit rating states that these are 1) the bank’s poor competitiveness (Koltso Urala is currently No.122 on the national rating, in terms of asset volume) and 2) a focus mainly on banking services rendered to the bank’s mother enterprise Ural Mining & Metallurgical Company (UMMC).

‘RAEX also warns about enhanced credit risks related to certain loans taken out by parties who are not connected in any way to the bank but do have economic connections with the UMMC Holding’s member enterprises,’ the agency says.

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