LOCKO-Bank Creditworthiness Rating А+ Assigned by «Expert RA»

«Expert RA» rating agency assigned ‘LOCKO-Bank’ creditworthiness rating А+ «Very high credit solvency» with Stable outlook, the first sublevel. Creditworthiness rating reflects «Expert RA» opinion on ability and willingness of the bank to meet in full in a timely manner its current and future financial obligation.

Well-balanced assets and liabilities structure by the maturity in the short-run period (as of 01 May 2014 N2=63%; N3=110%) and high ROE (18.2% as of 01 April 2013 – 01 April 2014) were the factors having a positive impact on the rating. Good capital structure (as of 01 May 2014 core capital share in total equity - 98% according to RAS) and reasonable CAR (as of 01 May 2014 N1.0=12.6% according to RAS) based on asset quality and provisioning policy supported the rating.

The positive factor was high turnover of the loan portfolio that allowed making a good assessment of the borrowers’ payment discipline - legal entities and private entrepreneurs. Moreover, a good level of loan portfolio collateral gave a positive effect (total loan portfolio collateral ratio including securities, sureties and guarantees - 549% as of 01 May 2014).