ACRA affirms the highest rating of IBEC

Analytical Credit Rating Agency (ACRA) affirms the credit rating of the International Bank for Economic Co-operation under the national scale for the Russian Federation – ‘AAA(RU)’, outlook Stable, and under the international scale – ‘A-‘, outlook Negative.

In its official rating release, ACRA emphasizes that the credit rating of IBEC is driven by its financial metrics that stem from strong capital adequacy, weak risk profile, and adequate liquidity and funding. At the same time, a moderately strong assessment of the shareholder structure and the degree of support from the member states do not affect the definitive rating of IBEC.

Despite a significant reduction in the Bank's capital due to geopolitical events in the first half of 2022, the capital adequacy of IBEC remains high, which still allows the Bank to withstand the potential risks of a significant deterioration in asset quality and a reduction in funding volumes. Although as of mid–2022, the Tier-1 capital ratio was slightly below 25% (39% at the end of 2021), the subsequent depreciation of the ruble made this ratio strong again, according to ACRA's estimates.

The rating agency notes a forced decrease in the volume of the Bank's assets in the first half of 2022. This is largely due to the policy pursued by IBEC for limiting credit risks in the context of the current political and economic crisis. At the same time, the average quality of the Bank's assets is still quite high. The share of NPL overdue by more than 90 days increased due to a decrease in the volume of the loan portfolio, but still remained low.

ACRA assesses the Bank's liquidity and funding position as adequate. The shares of individual items in the Bank's funding structure have changed significantly, but the overall diversification of liabilities has remained at a moderate level. Moreover, the reduction in the share of funds raised from other banks to less than 25% of the IBEC's balance sheet currency had a positive impact on the funding factor score.

“In the current turbulent geopolitical situation, ACRA rating agency has confirmed the highest rating of IBEC under the national scale for the Russian Federation. Despite the current extraordinary circumstances, IBEC has adhered to the fundamental values of free trade and economic diplomacy since the establishment of the Bank and continues its banking activities within the framework of new market realities, providing its customers and partners with all key products and ensuring the fulfillment of all its obligations.”
Chairman of the IBEC Board, Denis Ivanov
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