ANALYSIS OF THE INFLUENCE OF KEY FINANCIAL INDICATORS ON THE BANK'S CREDIT RATING

Abstract

This article provides a comprehensive analysis of the impact of key financial indicators on the formation of a bank's credit rating, which serves as a primary metric of financial stability, reliability, and competitiveness within the global financial services market. Utilizing the performance data of Raiffeisen Bank JSC for the period 2021–2025, the research examines the dynamics of assets, liabilities, capital structure, and overall financial results. Particular attention is paid to credit risk indicators, specifically the share of non-performing loans (NPLs) and their corresponding coverage ratios, to determine their weight in rating assessments.
The analysis of these financial indicators reveals a direct correlation between changes in asset structure, capital adequacy, profitability, and the resulting dynamics of the bank's credit rating. The study finds that the sustained growth of assets and the capital base, coupled with stabilized profitability and increased coverage for non-performing loans, significantly contributes to strengthening financial resilience and improving rating positions. Conversely, a high concentration of distressed assets during periods of economic crisis remains a critical risk factor that can jeopardize credit rating stability.
Based on the findings, the paper proposes a strategic set of measures to enhance bank creditworthiness, including capital base reinforcement, proactive liability management, and asset structure optimization. Furthermore, the study emphasizes the importance of ensuring transparent operations and strict adherence to regulatory requirements. The conclusions confirm that the effective management of financial indicators is a fundamental prerequisite for elevating credit ratings, fostering the trust of investors and regulators, and ensuring long-term institutional competitiveness.