6 июня 2019 г.

Credit agencies take into account a number of important factors when assigning credit ratings to banks. CFA Association Russia invited three top executives from Moody’s Investors Service to a business breakfast to shed light on the process of a detailed scrutiny that takes place during an assignment of credit ratings.

This summer’s first business breakfast took place at the Mazars Russia office, CFA Russia’s long-time partner. The event was the first part of a joint series of upcoming events between CFA Russia and Moody’s Investors Service. 

Yaroslav Sovgyra, CFA, head of Moody's Russia/CIS Banking Group, Vladlen Kuznetsov, CFA, Vice-President, and Svetlana Pavlova, CFA, Junior Vice-President at Moody’s gave a three-person interactive presentation on the factors and processes taken into account while evaluating the banks’ credit ratings.

Above: from left to right, Yaroslav Sovgyra, CFA, Svetlana Pavlova, CFA, and Vladlen Kuznetsov, CFA.

The first thing that happens at Moody’s when evaluating a bank’s credit rating is the formation of an assignment committee comprised of a group of financial analysts and a chair. 

This group of experts considers a variety of factors, including the thorough analysis of a bank’s creditworthiness, recent macroeconomic trends and the company’s forecast of the economy, the quality of the bank’s portfolio, and a few other variables.

Based on this analysis the company then recommends options regarding the bank’s rating. Essentially, the ratings can be improved, kept the same or lowered.

The guest speakers re-iterated that credit ratings are always subject to change based on new data and macroeconomic circumstances. It takes time to build up a good credit rating, but a couple of negative debt accounts will bring down a good score.

Moody’s will continue with the credit ratings theme in two weeks when Yaroslav Sovgyra will talk about the sovereign credit ratings in the aftermath of Moody’s recent upgrades of Russia’s credit rating.

To watch a full video of the event and access the speakers’ presentation, please join CFA Association Russia using this link.

FULL VIDEO OF THE EVENT >>>