Fitch cuts Absolut Bank, gives bond B

Fitch Ratings said it has downgraded Absolut Bank's long-term issuer default rating to B from BB+ and removed the ratings from rating watch negative.

The outlook is stable.

The rating action follows the sale of Absolut by Belgium's KBC Bank (A/stable) to a company controlled by Russian non-state pension fund Blagosostoyanie, the agency said.

Fitch said it has also assigned the bank's RUB 5 billion senior unsecured fixed-rate exchange bond issue (BO-03 series) a long-term rating of B, recovery rating of 'RR4 and national long-term rating of BBB+(rus).

The downgrade of Absolut's ratings reflects the lower probability of support from the bank's new shareholder.

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