23 January 2025

Analytical Credit Rating Agency (hereinafter referred as ‘ACRA’ or ‘the agency’) has affirmed the credit rating of Russian Agricultural Bank (hereinafter referred as ‘RusAg’ or ‘the Bank’) at AA(RU) with a ‘Stable’ outlook. The rating for the bank’s senior unsecured debt and subordinated perpetual bonds were affirmed at AA(RU) and B+(RU), accordingly.

The affirmation reflects RusAg’s high systemic importance to the Russian economy and national banking system, as well as its leading position as a key financial institution supporting the country’s agricultural sector.

According to ACRA, RusAg’s financial performance in the first nine months of 2024 was characterized by higher revenues compared to previous periods, driven by low credit losses. The share of non-performing and potential non-performing loans, as well as high-risk loans, in the bank’s loan portfolio has been declining over the past 12 months. The agency also highlights the Bank’s strong market presense, supported by an extensive regional branch network and high customer loalty nationwide.

ACRA notes that RusAg maintains a conservative approach to loan portfolio expansion in comparison with other major banks. This approach, in the agency’s view, support effective credit risk management amid an unpredictable operating environment.

RusAg’s funding structure is assessed as well-balanced and diversified, with a mix of corporate and retail deposits.