The credit rating of JSC "Denizbank Moscow" (hereinafter, the Bank) is based on the Bank’s fairly high standalone creditworthiness assessment (SCA) that stems from the adequate business profile, strong capital adequacy, satisfactory risk profile and adequate funding and liquidity position.

The Bank is a Russian subsidiary of a foreign bank, with its sole office in Moscow. As of February 1, 2022, the Bank ranked 101st by equity in the Russian market. The Bank’s core line of business includes comprehensive services (including lending and project financing, guarantees and letters of credit, cash and settlement services) to companies involved in export and import operations between Russia and Turkey and Turkish entities operating in Russia most of whom are customers of the Bank's parent entity (the Group).


The adequate business profile (bbb) stems primarily from the Bank’s strong franchise in servicing the Group’s customer companies in Russia. The operating income diversification is relatively low due to the nature of the Bank’s business, although in Q1 2022, this indicator improved. The system of corporate governance and strategic planning is assessed as adequate, given the significant regulatory control exercised by the Group over the Bank’s operations, and many years of successful work experience of top managers in both the Bank and the Group.

The significant loss absorption buffer is driven by a high level of common capital under the regulatory standards (N1.2 and N1.1 = 16.94% as of February 1, 2022; these ratios remained high in subsequent periods) that allows the Bank to withstand the growth in the cost of credit risk by more than 500 bps. The high average capital generation ratio (ACGR) is a result of a stable profitability of business and no dividend payouts. The operational efficiency is assessed as adequate, based on the low values of three-year average CTI and a moderate value of NIM.

The satisfactory risk profile assessment is underpinned by an acceptable share of potentially problem, in ACRA's opinion, loans in the Bank’s loan portfolio (NPL90+ are absent), and a moderate proportion of loans granted to companies operating in the high-risk industries. At the same time, the concentration on the top 10 groups of customers is extremely high, which is somewhat offset by guarantees issued by the Group for a number of loans. The Bank has been adhering to a conservative policy in its operations in the interbank market and in the formation of liquidity portfolio mostly consisting of high-liquid corporate securities of Russian issuers. The quality of the off-balance sheet contingent liabilities is assessed as adequate.

The adequate funding and liquidity position is due to the Bank’s fairly high ability to perform its payment obligations within the 90-days horizon, given a surplus of short-term liquidity in both the base case and stress scenarios of ACRA, as well as the possibility of instant attraction of funds through repurchase transactions. No imbalances are observed for longer periods (the long-term liquidity shortage indicator, LTLSI, is above 100%).

The Bank's resource base is volatile in view of a rather high concentration on the largest lenders, including on the funds obtained from the Group. The Bank's liabilities mainly include funds of resident corporates due to a growing number of new customers and a higher volume of their funds, which indicates a low diversification of the structure of liabilities. In ACRA's opinion, these risks are taken into account in the assessment of the concentration on funds held by the largest groups of lenders, which is why the Agency has not downgraded the funding factor assessment in this regard.

The neutral assessment of support reflects the results of a comparison of the creditworthiness of the Bank and the Group.


  • Adhering to the current business model within the 12–18 months horizon.

  • Maintaining the Bank's market positions in equity.

  • Common capital adequacy ratio (N1.2) above 15% within the 12–18 months horizon.


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:

  • Significantly lower concentration of the loan portfolio on top customers amid a substantial decline in the share of potentially problem loans in the loan portfolio.

A negative rating action may be prompted by:

  • Significant growth in the share of non-performing loans in the Bank’s loan portfolio;

  • Growing volume of market risk taken by the Bank;

  • Higher concentration of the resource base on the largest source and/or the largest lenders;

  • The need to provide financial resources to the Group.


SCA: a-.

Adjustments: none.

Support: none.


There are no outstanding issues.


The credit rating has been assigned 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, the Methodology for Analyzing Rated Entities Associated with a State or a Group, and the Key Concepts Used by Analytical Credit Rating Agency within the Scope of Its Rating Activities.

The credit rating assigned to JSC "Denizbank Moscow" was first published by ACRA on September 6, 2018. The credit rating and its outlook are expected to be revised within one year following the publication date of this press release.

The credit rating was assigned based on the data provided by JSC "Denizbank Moscow," information from publicly available sources, as well as ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of JSC "Denizbank Moscow," and the financial statements of JSC "Denizbank Moscow" drawn up in compliance with Bank of Russia Ordinance No. 4927-U dated October 8, 2018. The credit rating is solicited, and JSC "Denizbank Moscow" participated in its 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 no additional services to JSC "Denizbank Moscow." No conflicts of interest were identified in the course of credit rating assignment.

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