ACRA has assigned the “Rating under review: developing” status to the credit ratings of JSC “RN Bank” (hereinafter, RN Bank, or the Bank) and its bond issues to reflect the directive of 29.11.2022 by the President of the Russian Federation that enables Joint-Stock Company “AVTOVAZ” to acquire a 100% stake in RN Bank, which is held by BARN B.V., as well as other relevant information. Currently, the ultimate owners of the Bank are non-resident companies that are part of an international automobile alliance and an international financial group.
The Bank’s current AAA(RU) credit rating was based on the Bank’s standalone creditworthiness assessment (SCA) at a+ and the high probability of the Bank receiving necessary shareholder support. The Bank’s SCA was based on the strong capital adequacy and risk profile assessments, and the adequate liquidity and funding position. The Bank’s activities are focused on issuing car loans and factoring financing of car dealers.
The “Rating under review: developing” status reflects the need to receive and analyze information about the parameters and timeframes for the possible change to the shareholder structure, as well as other significant information needed to clarify RN Bank’s SCA and credit rating.
potential outlook or rating change factors
The “Rating under review: developing” status indicates a variety of trends: the rating may stay unchanged or be downgraded.
- Receipt of information needed to clarify the SCA and assess support at a level that is sufficient to affirm the current credit rating.
Removal of the “Rating under review: developing” status and downgrading the credit rating may be prompted by:
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Lower assessment of support from the potential new owner;
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Negative impact of the possible transaction on the Bank’s creditworthiness.
rating components
SCA: а+.
Adjustments: none.
Support: the previously assigned rating took into account the high likelihood of extraordinary support from the shareholders. Taking this into account, the Bank’s credit rating was set at AAA(RU).
issue ratings
Exchange-traded interest-bearing non-convertible certificated bond issued by JSC “RN Bank”, series BO-001Р-07 (RU000A102960), maturity date: October 24, 2023, issue volume: RUB 8 bln — ААА(RU).
Exchange-traded interest-bearing non-convertible certificated bond issued by JSC “RN Bank”, series BO-001Р-08 (RU000A1030Y7), maturity date: April 23, 2024, issue volume: RUB 8 bln — ААА(RU).
Exchange-traded interest-bearing non-convertible certificated bond issued by JSC “RN Bank”, series BОO-001Р-09 (RU000A103NY1), maturity date: September 12, 2024, issue volume: RUB 8 bln — ААА(RU).
Exchange-traded interest-bearing non-convertible uncertificated bond subject to centralized title registration issued by JSC “RN Bank”, series BO-001P-10 (RU000A105HN1), maturity date: December 1, 2025, issue volume: RUB 7 bln — ААА(RU).
Rationale. In the Agency’s opinion, the bonds listed above are senior unsecured debt instruments, the credit ratings of which correspond to the credit rating of JSC “RN Bank” — AAA(RU). The credit rating of the Bank has been assigned the status “Rating under review: developing” and therefore the bonds listed above have also been assigned the status “Rating under review: developing”.
regulatory disclosure
The credit ratings have been assigned to JSC “RN Bank” and the bond issues (RU000A102960, RU000A1030Y7, RU000A103NY1, RU000A105HN1) of JSC “RN Bank” 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 under the National Scale of the Russian Federation and the Methodology for Assigning Credit Ratings to Financial Instruments under the National Scale for the Russian Federation
were also applied to assign credit ratings to the above issues.
The credit rating of JSC “RN Bank” and the credit ratings of bonds issues (ISIN RU000A102960, RU000A1030Y7, RU000A103NY1, RU000A105HN1) of JSC “RN Bank” were published by ACRA for the first time on March 2, 2017, October 21, 2020, April 20, 2021, September 9, 2021, and November 28, 2022, respectively. The credit rating of JSC “RN Bank” and its outlook and the credit ratings of the bond issues (ISIN RU000A102960, RU000A1030Y7, RU000A103NY1, RU000A105HN1) of JSC “RN Bank” are expected to be revised by February 9, 2023.
The credit ratings were assigned based on data provided by JSC “RN Bank”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of JSC “RN Bank” and the financial statements of JSC “RN Bank” drawn up in compliance with Bank of Russia Ordinance No. 4927-U dated October 8, 2018. The credit ratings are solicited and JSC “RN Bank” participated in their assignment.
In assigning the credit ratings, ACRA used only information, the quality and reliability of which were, in ACRA’s opinion, appropriate and sufficient to apply the methodologies.
ACRA provided no additional services to JSC “RN Bank”. No conflicts of interest were discovered in the course of credit rating assignment.
