S&P lifts Bank of Khanty-Mansiysk

Standard & Poor's said it raised its long-term counterparty credit rating on Bank of Khanty-Mansiysk JSC (BKM) to B+ from B-.

At the same time, the short-term counterparty credit rating on the bank was raised to B from C, and Russian national-scale rating raised to A(ru) from BBB(ru).

The outlook is stable.

The ratings upgrade reflects the strengthening ties between BKM and its principal owner, the regional government of Khanty-Mansiysk Autonomous Okrug (foreign currency BB/stable), the bank's strong liquidity position and its good potential to strengthen its commercial franchise in its home region, S&P said.

The agency added that the ratings are constrained by the bank's low capitalization, volatile and concentrated funding base, weak sustainable earnings and high cost base.

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