On 17 August 2023, NCR has assigned an AA+.ru national-scale credit rating with a Stable outlook to Russian Agricultural Bank (RusAg, the Bank).
RusAg's credit rating defined by its very strong positions in the most important segment for the Bank – agribusiness lending. The Bank has an adequate capital reserve, both under RAS and IFRS, and sufficiently diversified funding. Liquid assets and additional liquidity cover the funds of the largest lenders with a significant margin. The management system corresponds to the development goals and the specifics of RusAg's business model. NCR notes the steady improvement in the Bank's financial result given the growing interest income and the decreasing cost of funding, RusAg's deep expertise in the field of agribusiness lending, as well as a decrease in the share of non-performing loans.
Note: Established in early 2019, National Credit Ratings (NCR) is a wholly owned subsidiary of RBC, a major Russian media group. The Bank of Russia added NCR to the list of accredited ratings agencies in September 2019. Using the most rigorous criteria, NCR rates financial institutions and insurers, corporates of all kinds, holding companies, local and regional governments, and debt obligations. Following best global practices, NCR has set new transparency standards for the Russian ratings industry and instituted several innovations to promote clarity, knowledge and better understanding for the entire community.
On 16 March 2023, ACRA affirmed the credit rating of Russian Agricultural Bank at AA(RU), outlook stable; AA(RU) to senior unsecured debt and B(RU) to subordinated perpetual bonds of the Bank.
The credit rating of RusAg reflects the very high systemic importance of the Bank, the leading role of the Bank in supporting the agricultural sector of the Russian Federation, and the very high likelihood of extraordinary support, if needed, from the government.
Note: ACRA is one of the biggest Russian authorized credit rating agency, founded in 2015. ACRA operates in compliance with the latest regulatory requirements and best global practices. The Agency’s main objective is to provide high-quality rating and analytical products to participants in financial markets on both the national and international levels.