Fitch may lower Absolut Bank

Fitch Ratings said it would likely downgrade Absolut Bank's long-term issuer default rating to the B category from BB+ if the sale of the bank to Russian non-state pension fund Blagosostoyanie goes through.

The Rating Watch negative on the bank's long-term issuer default rating already reflects the potential for the rating to be downgraded if it is sold to a weaker shareholder and will be resolved once a transaction is completed, Fitch said.

The bank has a short-term foreign-currency issuer default rating of B, national long-term rating of AA(rus), viability rating of B and senior unsecured debt rating of AA(rus), which also is on negative watch.

The ratings following a sale to Blagosostoyanie would probably depend, among other things, on how the transaction's structure and any revisions to strategy and business model impact the bank's standalone profile, Fitch said, along with the ability and willingness of the new shareholder to provide support to the bank in case of need.

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