Ratings
MDM Bank has one of the highest credit ratings from Standard & Poor's, Moody's and Fitch among privately-owned Russian banks.
MDM Bank’s ratings assigned by the three agencies are provided below.
- Long-term: BB
- Short-term: B
- Outlook: negative
- Russia Sovereign, Long-term: BBB
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| Good customer franchise and name recognition. |
Relatively risky operating environment. |
| Strengthening recurrent profitability. |
Funding vulnerability due to high single-name concentrations in customer deposits. |
| Adequate risk management and governance practices. |
High credit risk challenged by material exposure to construction and real estate sectors. |
| Reduced appetite for market risk. |
Relatively volatile earnings track record affected by market-sensitive results. |
Last review date: August 2008.
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- Overall Corporate Governance Score (CGS): CGS-6+/Russia National Scale 6.7
Last review date: February 2008.
- Bank deposits: Ba1/NP
- Financial Strength: D+
- Outlook: negative
- Russia Sovereign Rating, Long-term: Baa1
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| Developed franchise as one of Russia’s largest privately-owned banks with established positions in corporate and investment banking. |
Uncertainty over ability to successfully implement updated strategy due to intense competition in target market segments. |
| Wide branch network coverage, facilitating implementation of MDM Bank’s strategy of increasing business in the small business and retail banking segments. |
Concentrations in customer funding. |
| Historically good profitability, efficiency and capital adequacy indicators. |
Risks associated with the operating and regulatory environment in Russia. |
Last review date: December 2008.
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- IDR and foreign currency senior unsecured debt: BB; Stable
- Subordinated debt: B+
- National long-term rating and RUB senior unsecured debt: AA- (rus) ; Stable
- Short-term rating: B
- Individual rating: C/D
- Support rating: 4
- Russia Sovereign Rating, Long-term: ÂÂÂ+
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| Adequate capitalization |
Russian operating and banking environments |
| sound management and risk management capabilities |
Potentially significant, though falling, rollover risk associated with a high level of wholesale funding |
| satisfactory asset quality |
Risks inherent in the Bank’s rapid growth (credit, liquidity, etc.) |
| sound performance |
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Last review date: December 2008.
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09.12.2008 14:13