CYPRUS: RCB gets Moody’s upgrade, wins CIBA award

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 non-performing 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.