RCB gets Moody’s up­grade, wins CIBA ex­cel­lence award

Financial Mirror (Cyprus) - - FRONT PAGE -

Moody’s has up­graded RCB Bank Ltd’s de­posit rat­ings from Caa1 to B3, el­e­vat­ing it to the high­est rated bank in Cyprus re­flect­ing the bank’s new cap­i­tal struc­ture, di­ver­si­fi­ca­tion of its earn­ings, cap­i­tal­i­sa­tion and im­mu­nity from non­per­form­ing loans.

The bank said that the Moody’s up­grade also re­ferred to the ex­pan­sion of oper­a­tions to six branches in Cyprus and one in Lux­em­bourg, and a strong sol­vency po­si­tion which is ex­pected to be main­tained as it stems from high cap­i­tal buf­fers and a low NPL ra­tio.

As of June 2015, the bank’s Tier 1 cap­i­tal ra­tio stood at 20.95%, while the ra­tio of NPLs to gross loans was a low 0.64% as of De­cem­ber 2014.

The rat­ing agency’s re­port also states that credit risk in RCB Bank’s loan book is rel­a­tively con­tained al­low­ing for the out­look on the long term de­posit rat­ings to re­main stable.

“The up­grade will al­low the bank to at­tract more re­sources, thus en­abling for ad­di­tional lend­ing to Cypriot busi­nesses and shall also lead to making loans more af­ford­able,” said CEO Dr. Kir­ill Zi­marin.

“This de­vel­op­ment of more in­vest­ments and lend­ing will in our opin­ion con­trib­ute to the sus­tain­able growth of the econ­omy of Cyprus,” he added.

The news fol­lows yet an­other award added to RCB Bank’s man­tel­piece, this time re­ceiv­ing the “CIBA 2015 Busi­ness Award for ex­cel­lence” from the Cyprus In­ter­na­tional Busi­nesses As­so­ci­a­tion. Pre­sent­ing the award on be­half of Pres­i­dent Ni­cos Anas­tasi­ades dur­ing the CIBA mem­bers’ AGM in Li­mas­sol, Trans­port Min­is­ter Mar­ios Deme­tri­ades praised the bank’s con­tri­bu­tion to the Cyprus econ­omy and the con­tin­u­ous de­vel­op­ment of its oper­a­tions dur­ing th­ese last 20 years.

“The suc­cess­ful re­cov­ery of the Cypriot econ­omy re­quires fur­ther im­prove­ment in the qual­ity of as­sets of Cypriot banks and the raise of the coun­try’s in­ter­na­tional credit rat­ing to an in­vest­ment grade. This will al­low Cyprus to over­come the ef­fects of the eco­nomic cri­sis and to en­sure the growth and pros­per­ity of the coun­try’s econ­omy,” Zi­marin added.

Newspapers in English

Newspapers from Cyprus

© PressReader. All rights reserved.