Standard & Poor's expects ZapSibComBank’s profits to go down

The international rating agency promoted the national scale rating of West-Siberian Commercial Bank (ZapSibComBank) from ruBBB- to ruBBB and raised the bank’s bond rating from ruBBB- to ruBBB as well. Now the bank currently has 1.5 billion RUR worth of bonds with a 12% annual coupon interest rate; the bonds are to be retired in 2011.

In addition, Standard & Poor's affirmed the bank’s В-/С long-term and short-term contractor credit rating, with Stable rating outlook.

‘ZapSibComBank’s ratings were increased because the bank showed some more distinct signs of recovering its paying capacity,’ says Standard & Poor's credit analyst Mikhail Nikitin.

On the other hand, among the negative factors that could affect the rating are the fact that the bank’s lending portfolio depends heavily on rather big loans given out to only a few borrowers from a limited number of industrial branches; the probability of the bank’s asset quality getting worse; and the bank’s relatively low profitability.