Credit rating rationale. The issue represents senior unsecured debt of Bank RRDB (JSC) (the Bank). Due to the absence of either structural or contractual subordination of the issue, ACRA regards it as pari passu to other existing and future unsecured and unsubordinated debt obligations of the Bank. According to the ACRA methodology, the credit rating of the issue is equivalent to that of the Bank — AA-(RU).
The credit rating assigned to the Bank stems from its sustainable business profile, very low problem loans and strong capital adequacy. The standalone creditworthiness assessment (SCA) is under certain pressure from a high concentration of both assets and funding on the Bank’s affiliates and the risks arising from the fast-track development strategy of the Bank. The rating is supported by a high likelihood of extraordinary support from the parent holding. The Bank acts as a settlements center for the parent holding company and provides a wide range of services to its counterparties, clients, and employees.
Key issue properties
|
Borrower |
Bank RRDB (JSC) |
|
Issuer’s credit rating |
AА-(RU), outlook Stable |
|
Actual issuer |
Bank RRDB (JSC) |
|
Type of security |
Certified exchange-traded interest-bearing non-convertible unregistered bond, |
|
Issue volume |
RUB 5 bln |
|
ISIN |
No ISIN has been assigned |
|
Final placement date |
February 2, 2018 |
|
Maturity date |
July 30, 2021 |
Regulatory disclosure
The credit rating has been assigned under the national scale for the Russian Federation and is based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale of the Russian Federation, and the Key Concepts Used by the Analytical Credit Rating Agency Within the Scope of Its Rating Activities.
A credit rating has been assigned to 001R-02 series bond issued by Bank RRDB (JSC) for the first time. The credit rating is expected to be revised within one year following the rating action date (January 29, 2018).
The assigned credit rating is based on the data provided by Bank RRDB (JSC), information from publicly available sources, and ACRA’s own databases. The credit rating is solicited, and Bank RRDB (JSC) participated in its assignment.
ACRA provided no additional services to Bank RRDB (JSC). No conflicts of interest were discovered in the course of credit rating assignment.
