The severe deterioration of the bank’s asset quality and earnings capacity following the Russia-Ukraine war drive the downgrade. High capitalisation, shareholder support, preferred creditor status, and prudent crisis management anchor the rating.

The severe deterioration of the bank’s operating environment in the wake of the Russia-Ukraine war and the expected adverse impact on its asset quality drive the downgrade. Uncertainties over the bank’s asset performance drive the Negative Outlook.

High capitalisation, sound liquidity profile, strong asset quality, well diversified portfolio, and profitability support the rating; shareholders’ limited ability to provide support, difficult operating environment and rising leverage are challenges.