The Analytical Credit Rating Agency (hereinafter  - ACRA) has assigned NCC Clearing Bank (hereinafter - NCC) the  rating of AAA (RU) with  a Stable outlook, according to the statement released on the Agency’s  web.  

According to ACRA experts, the credit rating and outlook assigned to NCC is based on its strong and stable business profile, exceptional liquidity position, and high capital adequacy, with the latter compensating for the Bank's risk profile. The rating is additionally supported by NCC’s critical systemic importance for the Russian financial market.

The announcement details ACRA key rating drivers as follows:

Strong business profile, which is reflected in NCC’s key role as a clearing organization and central counterparty holding almost monopolist market position. The business profile assessment is also supported by the high corporate governance standards implemented in Moscow Exchange Group.

Strong capital adequacy position, which is achieved through NCC’s ability to generate a steady volume of new capital with moderate dividend payout.

Significant amount of assets exposed to market risk exerts pressure on the aggregate risk profile of NCC, but in the rating structure it is offset by practically minimal counterparty credit risk in the event of CCP default. This is achieved through a well-structured risk management system, default waterfall (including dedicated capital) and default localization principles in place.

NCC’s critical systemic importance for the Russian financial market. ACRA estimates that NCC’s default (cessation of activity) might lead to a systemic crisis in most of Russian financial market segments, which in turn might have a significant negative impact on financial stability and economic conditions of the entire country.