Moody’s Investors Service has upgraded Alfa-Bank’s baseline credit assessment (BCA) from ba2 from ba3, noting a stable outlook for the bank.
The upgrade indicates improvements in the bank's financial numbers. Last year, the bank's nonperforming loans (NPLs) decreased to 4.2 percent compared to the 2015 total of 6.9 percent because it successfully resolved problems with old assets and issuing fewer loans viewed as problematic, according to a press release. Profitability also increased due to reduced credit costs.
The bank also saw an increase in capital generation, up to 15.3 percent at the end of last year.
Moody’s considers Alfa-Bank highly important for Russia, according to the press release. The press release also states that Alfa-Bank is the highest rated of all private banks in Russia.
The bank was founded in 1990 and offers services in most banking sectors, including retail and corporate lending, investment banking and leasing.