Bank Severnaya Kazna’s stability might be shattered, RusRating claims

26 December 2008 (10:50)

RusRating promoted Yekaterinburg-based Bank Severnaya Kazna’s credit rating from BB- to BB+, with Indefinite rating outlook.

‘This rating promotion stems from the bank’s being acquired by a new, financially strong majority stockholder (Alfa-Bank), which definitely supports the troubled bank’s finances,’ says RusRating’s leading analyst Elena Nikolaenko.

‘In addition, the bank was aided by the government through credit resources. Apart from being supported by the state and the strong proprietor, the bank can also boast a stable position on the regional market. Nevertheless, the bank’s stability might be endangered because of its great dependence on the private customers’ investments and due to systemic economic troubles in Russia,’ the agency reports.

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