Russian borrowers’ credit health reached nearly a four-year low in October. The country’s FICO® Credit Health Index fell to 102, down from 104 last quarter, and just 2 points above the low experienced in late 2009. This information was published by FICO with our partner, the National Bureau of Credit Histories (NBKI), Russia’s leading credit bureau.

Russian Health Check 6a00d83451629b69e2019b02b87085970d-800wiSince April 2012, the index has continued to worsen through to the current quarter. With the index continuing its downward trend, consumer performance needs to be closely monitored in the coming quarters. As Russian lenders grant more unsecured consumer loans and credit cards, delinquency rates will likely continue to rise.

But all risk managers must bear in mind that this countercyclical effect is normal after a period of rapid growth in emerging economies. Growth was based on newcomers to the credit market, customers with no previous experience with credit products, even some who just reacted to the credit euphoria.

You can read more about regional trends in FICO’s news release.