The 'A+' rating indicates that PJSC Tatfondbank qualifies as a highly creditworthy borrower. The risk of a failure to meet obligations in time is insignificant.

PJSC Tatfondbank qualifies as a large Russian bank in terms of the amount of business. As of January 1, 2016, the Bank ranked 43rd in terms of asset size, 45th in terms of equity capital, 665th in terms of net profit among Russian banks.

In 2015, the Bank's key balance sheet indicators (such as liabilities and assets) saw a considerable increase (+17% and +16%, respectively); the share of profitable investments in securities and loan assets stayed at the previous level of approximately 70%.

While the Bank's loan portfolio expanded by 15%, the loan arrears remained at ca. 3.2%, which is considerably (almost 1.7 times) below the average percentage in Russia's banking sector.

At the same time, the cost of debt growth rate notably outstripped the asset investment value levels, which caused discrepancy in interest rates on debt liabilities and assets and materialization of interest risks. All through 2015, the bank's aggregate expenses constantly exceeded incomes, resulting in a substantial loss of RUB 490.8 million.

AK&M Rating Agency assigned a credit rating to PJSC Tatfondbank for the first time on January 31, 2014. The last rating action in relation to the Bank was taken on December 31, 2015. All rating action announcements are available on the akmrating.ru website.

For estimation purposes, we completely rely on the reliability of information provided by the Bank. The rationale for AK&M Rating Agency's judgment on the rating may include information acquired from other sources we deem to be reliable; however, the agency does not check the input data exhaustively and disclaims all responsibility for their possible errors.

This press release is based on the Statement of assignment of a credit rating to PJSC Tatfondbank and the Credit Rating Methodology for Banks and their Debt Instruments rev. November 27, 2015.

The rating, along with any information and conclusions provided in this press release, only conveys our opinion on the Bank's creditworthiness and shall not be construed as a recommendation to purchase or sell securities, or to lend funds.

AK&M Rating Agency shall not be held liable for any interpretations, inferences and consequences related to the application of results of the rating estimation procedure by any third parties.

AK&M Rating Agency is a leading independent national rating agency engaged in rating activities since 1993. CJSC AK&M Rating Agency is accredited by the Ministry of Finance of the Russian Federation (order no. 452 as of September 17, 2010) and is on the Central Bank of Russia's Register of Accredited Rating Agencies.

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