Fitch rates Absolut Bank eurobond B

Fitch Ratings said it affirmed Absolut Bank's issuer default rating at B, short-term rating at B, individual rating at D, support rating at 5 and national long-term rating at BBB(rus). Fitch said it also assigned Absolut Finance SAs upcoming eurobond issue an expected long-term B rating and an expected recovery rating of 4. The notes are to be used solely for financing a loan to Absolut. Final ratings are contingent upon final documents conforming to information already received.

The outlook remains stable.

The ratings reflect the risks associated with the bank's rapid growth and geographical expansion, high concentration by borrower and on Moscow's real estate and construction sectors and certain weaknesses in the operating environment, Fitch said.

The ratings also take into account the bank's sound performance to date, good asset quality and niche franchises in trade finance and mortgages, the agency added.

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