Fitch lifts Absolut Bank to B+

Fitch Ratings said it upgraded Absolut Bank's long-term issuer default rating to B+ from B.

The agency also affirmed the long-term issuer default ratings of LLC Expobank, Russian Universal Bank and Spurt Bank at B.

The outlooks on all four banks' issuer default ratings are stable.

Fitch said Absolut's upgrade mainly reflects its longer track record of sustainable performance after it was acquired in May 2013 by Non-State Pension Fund Blagosostoyanie, controlled by JSC Russian Railways (BBB/negative), and reduced concerns about its recent merger with sister bank, OJSC KIT Finance Investment Bank, partly because the fund had acquired some impaired assets from KIT's balance sheet prior to merger.

The upgrade also considers the fund's now stronger commitment in assisting the bank in its development, also reflected in considerable amount of funding provided to it by the fund's related parties to replace that of the former owner KBC Bank (A-/stable), and broader involvement of the bank in servicing companies related to the fund, Fitch said.

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