The credit rating of Bank RRDB (JSC) (hereinafter, RRDB, or the Bank) stems from the Bank’s sustainable business profile and strong capital adequacy. The standalone creditworthiness assessment (SCA) is still under certain pressure from a high concentration of both assets and funding on RRDB’s affiliates, namely, the companies of the parent group (hereinafter, the Supporting Entity, the SE, or the Parent Company), as well as from the risks arising from the growth of the scale of the Bank’s activities.

RRDB acts as a settlement center for its parent holding company and provides a wide range of services to its counterparties, clients, and employees.

key assessment factors

High likelihood of support from the Parent Company. ACRA believes that the creditworthiness of the shareholding company is high and it has sufficient resources to provide RRDB with capital and liquidity if necessary. The Agency notes that the shareholder significantly recapitalized RRDB in 2016, which confirms the SE’s interest in developing the Bank’s business. The high level of support is also backed by the Bank’s deep operational integration in the group. The assessment of the likelihood of support is capped by moderate strategic risk for the SE, given the differing nature of operations of the Bank and the Parent Company. Three notches are added to the Bank’s SCA taking into account the support for the credit rating.

The Bank’s business profile assessment reflects its strong positions in the Russian banking sector: RRDB ranked 14th in terms of capital among Russian banks as of February 1, 2022. The Bank has a high-quality brand, and its operating income is adequately diversified. However, the business profile assessment still includes the specific market niche of the Bank, as currently it is focused on servicing fuel and power companies, and the possible risks associated with the rapid increase in the size of assets.

RRDB is the temporary administrator of Peresvet Bank (the procedure is supposed to run until 2032). ACRA estimates RRDB’s engagement in the rehabilitation as neutral in terms of its creditworthiness.

ACRA assesses the Bank’s capital adequacy as strong, which is positive for the SCA. The Bank’s RAS N1.2 capital adequacy ratio has been sufficiently high over an extensive period. This indicator was on a downward trend due to the Bank gradually increasing the size of its loan portfolio, however, it has stabilized. ACRA does not expect the capital adequacy indicator to fall to a level that could impact the assessment of this factor within the 12 to 18-month horizon, including taking into account the current slowdown of lending. In addition, the Bank has a high capital generation potential (the averaged capital generation ratio, or ACGR, has been adequate over the past five years). According to ACRA’s stress test, the Bank has a high capacity to absorb potential credit risks: RRDB can withstand a significant increase in the cost of risk without breaching regulatory requirements (including taking into account the expected growth of the loan portfolio).

The satisfactory risk profile assessment reflects the level of the Bank’s non-performing loans (that remains very low), combined with the loan portfolio’s heightened concentration on major borrowers and fuel and power companies. As of January 1, 2022, the volume of impaired loans (Stage 3 loans under IFRS and acquired or issued impaired loans) amounted to a share of the total loan portfolio, which characterizes its quality as strong. At the same time, amid emerging negative trends in the economy, the Agency expects an increase in the cost of risk for loans and the volume of problem debt in the medium term. Relatively significant growth in lending to borrowers from various sectors of the economy continues to constrain the risk profile assessment.

The quality and diversification of the Bank’s securities portfolio is good, as the portfolio includes bonds issued by the largest Russian non-financial corporations and banks, as well as the Russian government and quasi-sovereign borrowers. In addition, the Bank places liquid funds at a number of (mainly Russian) banks with high creditworthiness.

The funding and liquidity factor is assessed as adequate, taking into account the Bank’s short-term liquidity surplus in ACRA’s base case scenario and a deficit in the stress scenario, and the stable long-term liquidity position of the Bank. At the same time, the long-term liquidity shortage indicator is under pressure due to the significant volume of client funds placed in term deposits. At the same time, the Bank possesses a number of instruments to attract additional liquidity if necessary.

The high funding concentration on the parent company and related companies limits this factor amid a high share of funds of corporate clients in the Bank’s liabilities. ACRA does not expect any major changes in the funding structure within the 12 to 18-month horizon.


  • Cost of credit risk no higher than 3% within the 12 to 18-month horizon;

  • Moderate level of problem loans (as per ACRA’s assessments) within the 12 to 18-month horizon;

  • Strong capital adequacy within the 12 to 18-month horizon.

potential outlook or rating change factors

The Stable outlook assumes that the rating will highly likely stay unchanged within the 12 to 18-month horizon.

A positive rating action may be prompted by:

  • Lower loan portfolio growth rate amid a stably low level of problem loans;

  • Lower concentration of the loan portfolio on the largest groups of borrowers;

  • Increased diversification of funding sources.

A negative rating action may be prompted by:

  • Growth of the share of problem loans in the loan portfolio;

  • Deteriorating liquidity position of the Bank;

  • Substantial decrease in profits and capital adequacy;

  • Significant narrowing of the functions and declining importance of the Bank within the group.

rating components

SCA: а.

Support: SCA plus three notches.

issue ratings

Bank RRDB (JSC), 001R-03 (RU000A100691), maturity date: March 8, 2024, issue volume: RUB 5 bln — AA(RU).

Bank RRDB (JSC), 001R-04 (RU000A101NQ1), maturity date: May 9, 2025, issue volume: RUB 5 bln — AA(RU).

Bank RRDB (JSC), 001R-05 (RU000A1025H2), maturity date: September 18, 2025, issue volume: RUB 5 bln — AA(RU).

Rationale. The bonds listed above are senior unsecured debt instruments of RRDB. Due to the absence of either structural or contractual subordination of the issues, ACRA ranks them as pari passu with other existing and future unsecured and unsubordinated debt obligations of the Bank. According to ACRA’s methodology, the credit ratings of the issues are equivalent to that of Bank RRDB (JSC).

regulatory disclosure

The credit ratings have been assigned to Bank RRDB (JSC) and the bonds (RU000A100691, RU000A101NQ1, RU000A1025H2) issued by Bank RRDB (JSC) under the national scale for the Russian Federation based on the Methodology for Credit Ratings Assignment to Banks and Bank Groups Under the National Scale for the Russian Federation, Methodology for Analyzing Rated Entities Associated with a State or a Group, and the Key Concepts Used by the Analytical Credit Rating Agency Within the Scope of Its Rating Activities. The Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments on the National Scale for the Russian Federation was also applied to assign credit ratings to the above issues.

The credit ratings of Bank RRDB (JSC) and the bonds issued by Bank RRDB (JSC) — RU000A100691, RU000A101NQ1, and RU000A1025H2 — were published by ACRA for the first time on July 25, 2017, March 14, 2019, May 14, 2020, and September 24, 2020, respectively. The credit rating of Bank RRDB (JSC) and its outlook and the credit ratings of the bonds of Bank RRDB (JSC) are expected to be revised within one year following the publication date of this press release.

The credit ratings were assigned based on data provided by Bank RRDB (JSC), information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS consolidated financial statements of Bank RRDB (JSC) and the financial statements of Bank RRDB (JSC) drawn up in compliance with Bank of Russia Ordinance No. 4927-U dated October 8, 2018. The credit ratings are solicited, and Bank RRDB (JSC) participated in their assignment.

In assigning the credit ratings, ACRA used only information, the quality and reliability of which was, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.

ACRA provided additional services to Bank RRDB (JSC). No conflicts of interest were discovered in the course of credit rating assignment.

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