Credit rating scale for banks

Class-categorized ratings explicit readings for the current financial health and quality of risk management applicable to appraised banks. Financial solvency standings for banking institutions feature the following four classes: A, B, C and D. Notably, the A, B and C classes are broken down into a number of sub-classes to provide a more nuanced picture of the given bank’s solvency, financial sustainability and prospects for business expansion. Following a most thorough review, a bank can be granted one of the following ratings (all classes and sub-classes being given in the order of diminishing solvency standings):

Class A++

This rating is standing for a superior level of solvency with good outlooks for the future. In the short run, this kind of bank is most likely to have all of its current and unscheduled commitments appropriately satisfied. In the mid term, the bank would be rather likely to fulfill its obligations even under major negative shifts in macroeconomic and market indicators.

Class A+

High level of solvency with stable outlooks for the future. In the short run, this kind of bank is most likely to have all of its current and unscheduled commitments appropriately satisfied. In the mid term, the bank would be rather likely to fulfill its obligations in case of stability of macroeconomic and market indicators.

Class A

High level of solvency. In the short run, this kind of bank is most likely to have all of its current and unscheduled commitments appropriately satisfied. In the mid term, the bank would be rather likely to fulfill its obligations envisaging major payouts in case of stability of macroeconomic and market indicators.

Class B++

This rating generally stands for an acceptable solvency level with good outlooks for the future. In the short run, this kind of bank is most likely to have all of its current and insignificant (mid-value) unscheduled commitments appropriately satisfied. The bank is likely to experience some financial hardships whenever circumstances require that major one-off payouts have to be made. In the mid term, the bank can optimize the available capacities to fulfill its obligations even under major negative shifts sustained by macroeconomic and market indicators.

Class B+

Acceptable solvency level with stable outlooks for the future. In the short run, this kind of bank is most likely to have all of its current and insignificant (mid-value) unscheduled commitments appropriately satisfied. The bank is likely to experience some financial hardships whenever circumstances require that major one-off payouts have to be made. In the mid term, the bank can optimize the available capacities to fulfill its obligations in case of stability of macroeconomic and market indicators.

Class B

Acceptable solvency level. In the short run, this kind of bank is most likely to have all of its current and insignificant (mid-value) unscheduled commitments appropriately satisfied. The bank is likely to experience some financial hardships whenever circumstances require that major one-off payouts have to be made. In the mid term the fulfillment of its obligations will to a great extent depends on stability of macroeconomic and market indicators.

Class C++

Low solvency level with good outlooks for the future. The bank appropriately satisfies all of its current commitments. There’s quite significant probability of default on its unscheduled commitments. In the mid term, the bank can optimize the available capacities to fulfill its obligations in case of stability of macroeconomic and market indicators.

Class C+

Low solvency level with stable outlooks for the future. The bank appropriately satisfies all of its current commitments. There’s quite significant possibility of default on its unscheduled commitments. In the mid term the probability of fulfillment of its obligations depends on stability of macroeconomic and market indicators.

Class C

Low solvency level. The bank appropriately satisfies all of its current commitments. There’s quite significant possibility of default on its unscheduled commitments.

Class D

Unsatisfactory solvency level (bankruptcy). The bank fails to satisfy its current commitments, or there is a high probability of default on its unscheduled commitments.

Following completion of a bank appraisal, an effort is then made to put together a complete rating report that is submitted to the rated bank. The rating agency translates the report into a rating statement that the relevant bank can release for pertinent rating lists to be developed and then carried by the Expert magazine, www.expert.ru; www.raexpert.ru sites and other media outlets.

Importantly, bank ratings can only be made public following relevant approvals from the customer, with a written authorization being submitted by his agent. In the absence of such clearance, the entire rating effort shall be held confidential. To add, the rating agency assures confidentiality of the entire body of knowledge submitted by the rated bank.