The credit rating of JSC “ALFA-BANK” (hereinafter, Alfa-Bank, or the Bank) is based on its strong business profile, adequate assessments of risk profile and capital adequacy, and adequate funding and liquidity position. The rating is further supported by Alfa-Bank’s moderate systemic importance for the Russian financial market.
The credit ratings of the Bank’s bonds that are senior unsecured debt instruments have been affirmed at AA+(RU). The credit ratings of the Bank’s subordinated bonds that are Tier 2 capital instruments have been affirmed at A+(RU). The credit ratings of the Bank’s subordinated bonds that are Tier 1 capital instruments have been affirmed at BBB(RU).
The Positive credit rating outlook reflects the Agency’s opinion on the expected strengthening of the Bank’s capital position over the 12 to 18-month horizon against the background of a growth of regulatory capital adequacy ratios and, consequently, the loss absorption buffer.
Alfa-Bank is a universal nationwide private bank focusing on lending to large and medium-sized businesses and individuals, and providing transactional services to customers. The Bank ranks fourth in terms of assets and capital and third in terms of funds raised from individuals.
key assessment factors
Strong business profile assessment (a). Alfa-Bank’s franchise in lending and transactional services for businesses and individuals is strong, and its operating income is moderately diversified and has recorded stable growth over the past 24 months. The Bank’s high-quality corporate governance and adequate development strategy matching the current conditions of the macroeconomic environment are also positive for the assessment.
The adequate capital adequacy assessment is based on the current values of regulatory ratios, as well as IFRS capital adequacy ratios. As of July 1, 2025, the N20.2 ratio was 8.40%, and the N1.2 ratio was 8.4% as of July 1, 2025 and 10.07% as of August 1, 2025 (vs. an average of 8.47% over the past 12 months). In its analysis, ACRA took into account that the IFRS ratio is higher than the N20.2 ratio. The Agency notes that the growth of capital adequacy ratios creates conditions for improvement of the loss absorption buffer on the backdrop of the stable quality of the loan portfolio.
The Bank’s internal capital generation remains stable (according to ACRA’s estimates, the average capital generation ratio (ACGR) calculated for 2020–2024 exceeds 100 bps) since the marginality is maintained at a level slightly higher than the industry average.
The adequate assessment of the risk profile reflects, first, the high quality of the loan portfolio that demonstrates a relatively low proportion of non-performing and potentially non-performing loans with a moderate concentration on the ten largest groups of borrowers. The share of loans referred by the Bank to IFRS 9 Stage 3 loans was 3.2% as of June 30, 2025, although ACRA notes a slight increase in the indicator over the past 12 months (as of June 30, 2024, the share of such loans was 1.7%). Moreover, the share of Stage 2 loans is also growing, which, in ACRA’s opinion, is mainly associated with the Bank’s conservative approach to managing credit risks and not with a declining solvency of the key borrowers. At the same time, according to the Agency’s estimates, the total amount of loans granted to the ten largest groups of borrowers did not exceed 20% as of June 30, 2025. ACRA also notes a growth of the ratio reflecting the concentration of the bank group’s credit risks in H1 2025. The structure of Alfa-Bank’s loan portfolio remains unchanged: corporate assets amount to about 67%. The share of unsecured loans remains elevated, which constrains the risk profile assessment (most of these loans are provided to corporate clients, and the share of Stage 3 loans in the corporate portfolio is no more than 2%). At the same time, the Agency notes a stabilization in the growth rate of the loan portfolio, although this is associated with, among other things, a general slowdown in lending in Russia.
Adequate funding and liquidity position. Alfa-Bank retains a strong ability to withstand an outflow of customer funds, including due to the Bank consistently maintaining its ability to obtain funds from the Bank of Russia and the Federal Treasury Department. On the long-term horizon, the liquidity position is assessed as adequate. As of August 1, 2025, the N2 ratio was about 117.7% and the N3 ratio was about 93.8%. In its assessment of the funding structure sustainability, ACRA takes into account the fact that the Bank’s resource base is largely formed by stable current funds of individuals and demonstrates positive dynamics of term deposits over the past 12 months.
The funding structure is well balanced due to adequate diversification by funding sources (with a slight excess of the share of legal entities in the Bank’s liabilities) and major creditors. As of June 30, 2025, the total amount of funds held by the ten largest clients other than credit institutions was 9.9% (vs. 11.5% as of December 31, 2024).
Moderate systemic importance. In ACRA’s opinion, a default of Alfa-Bank would lead to a systemic crisis in certain segments of the Russian banking market and, consequently, have a significant negative impact on the Russian financial sector and the economy in general. Alfa-Bank is on the Bank of Russia’s list of systemically important credit institutions.
key assumptions
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Maintaining the current positions in key business segments.
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Common capital adequacy ratios (N1.2, N20.2, Tier 1) above 8% within the 12 to 18-month horizon.
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Maintaining the current funding structure.
Potential outlook or rating change factors
The Positive outlook assumes that the rating will highly likely be upgraded within the 12 to 18-month horizon.
A positive rating action may be prompted by:
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Further strengthening of market positions in comparison with other systemically important credit institutions;
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Better capital adequacy ratios and stress test results along with the loan portfolio’s moderate growth rates;
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Substantial growth of the share of collateralized loans along with the loan portfolio’s moderate growth rates and stable quality.
A negative rating action may be prompted by:
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Decrease in the common capital adequacy ratios (N1.2, N20.2, Tier 1) below 8% and/or in the ability to generate capital;
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Substantial growth in the share of non-performing and potentially non-performing loans in the portfolio;
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Deteriorating liquidity indicators and/or funding structure.
rating components
Standalone creditworthiness assessment (SCA): aa-.
Adjustments: none.
Support: systemic importance, +2 notches.
issue ratings
Rationale. The issues listed below represent senior unsecured debt of Alfa-Bank. Due to the absence of either structural or contractual subordination of the issues, ACRA regards them as equal to other existing and future unsecured and unsubordinated debt obligations of the Bank in terms of priority. According to ACRA’s methodology, the credit ratings of the issues are equivalent to that of Alfa-Bank, i.e. AA+(RU).
1. Bond, series BО-18 (ISIN RU000A0JX5W4), maturity date: January 5, 2032, issue volume: RUB 5 bln — АА+(RU).
2. Bond, series BО-40 (ISIN RU000A0ZYU21), maturity date: March 4, 2033, issue volume: RUB 10 bln — АА+(RU).
3. Bond, series BО-39 (ISIN RU000A0ZYWB3), maturity date: March 17, 2033, issue volume: RUB 10 bln — АА+(RU).
4. Bond, series BО-21 (ISIN RU000A0ZYBM4), maturity date: October 13, 2032, issue volume: RUB 5 bln — АА+(RU).
5. Bond, series 002P-23 (ISIN RU000A106AJ2), maturity date: November 30, 2025, issue volume: RUB 13 bln — AA+(RU).
6. Bond, series 002P-24 (ISIN RU000A106KV6), maturity date: January 20, 2026, issue volume: RUB 10 bln — AA+(RU).
7. Bond, series 002P-25 (ISIN RU000A107AM4), maturity date: November 26, 2026, issue volume: RUB 11 bln — AA+(RU).
8. Bond, series 002P-26 (ISIN RU000A107TH4), maturity date: February 17, 2027, issue volume: RUB 11 bln — AA+(RU).
9. Bond, series 002P-29 (ISIN RU000A108BB3), maturity date: April 19, 2027, issue volume: RUB 10 bln — AA+(RU).
Rationale. The issues listed below are subordinated debt of Alfa-Bank with respect to senior unsecured creditors, and they are Tier 2 capital instruments. According to ACRA’s methodology, the credit rating of this issue is three notches below the credit rating of Alfa-Bank (AA+(RU)).
10. Subordinated Eurobond (LPN) (ISIN XS2063279959), actual issuer: Alfa Bond Issuance Plc, maturity date: April 15, 2030, issue volume: USD 850 mln — А+(RU).
11. Subordinated Eurobond (LPN) (ISIN XS2333280571), actual issuer: Alfa Bond Issuance Plc, maturity date: October 26, 2031, issue volume: USD 350 mln — А+(RU).
12. Subordinated bond (ISIN RU000A10BFQ1), maturity date: April 18, 2032, issue volume: RUB 6 bln — А+(RU).
Rationale. The issues listed below envisage a significant level of subordination relative to senior unsecured creditors, and they are Tier 1 capital instruments. According to ACRA’s methodology, the final credit rating of this type of issue is five notches below the SCA of Alfa-Bank (aa-).
13. Subordinated perpetual Eurobond (ISIN XS1760786340), actual issuer: Alfa Bond Issuance Plc, maturity date: perpetual, issue volume: USD 500 mln — BBB(RU).
14. Subordinated perpetual bond (ISIN RU000A100GW5), maturity date: perpetual, issue volume: RUB 5 bln — BBB(RU).
15. Subordinated perpetual Eurobond (ISIN XS2410104736), maturity date: perpetual, issue volume: USD 400 mln — BBB(RU).
regulatory disclosure
The credit ratings have been assigned to of JSC “ALFA-BANK” and the bond issues of JSC “ALFA-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 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 Financial Instruments on the National Scale for the Russian Federation was also applied to assign credit ratings to the above issues.
The credit rating of JSC “ALFA-BANK” was published by ACRA for the first time on November 15, 2016. The credit rating of the bond issue (ISIN RU000A0JX5W4) was published by ACRA for the first time on January 24, 2017; (ISIN RU000A0ZYU21) — on February 21, 2018; (ISIN RU000A0ZYWB3) — on March 6, 2018; (ISIN RU000A0ZYBM4) — on October 2, 2017; (ISIN XS1760786340) — on January 31, 2018; (ISIN RU000A100GW5) — on June 27, 2019; (ISIN XS2063279959) — on October 23, 2019; (ISIN XS2333280571) — on July 6, 2021; (ISIN XS2410104736) — on February 15, 2022; (ISIN RU000A106AJ2) — on May 30, 2023; and (ISIN RU000A106KV6) — on July 20, 2023, (ISIN RU000A107AM4) — on November 30, 2023, (ISIN RU000A107TH4) — on February 21, 2024, (ISIN RU000A108BB3) — on April 22, 2024, (ISIN RU000A10BFQ1) — on June 16, 2025.
The credit rating JSC “ALFA-BANK” and its outlook, as well as the credit ratings of the bond issues of JSC “ALFA-BANK”, 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 JSC “ALFA-BANK”, information from publicly available sources, and ACRA’s own databases. The rating analysis was performed using the IFRS financial statements of JSC “ALFA-BANK”, and the financial statements of JSC “ALFA-BANK” drawn up in compliance with the Bank of Russia’s requirements. The credit ratings are solicited and JSC “ALFA-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 additional services to JSC “ALFA-BANK”. No conflicts of interest were discovered in the course of credit rating assignment.
