Fitch affirms Sberbank

Fitch Ratings said it has affirmed Savings Bank of the Russian Federation's (Sberbank) long-term issuer default rating at BBB with a negative outlook.

The rating affirmation reflects Sberbank's importance to the Russian banking sector due to its unmatched size and domestic franchise and its majority state ownership, and is driven by the potential for support from the Russian state (BBB/negative), the agency noted.

According to Fitch, Sberbank's individual rating of C/D considers ongoing asset quality deterioration, albeit at a slower pace, in the still challenging Russian operating environment.

However, it also takes into account the bank's large countrywide franchise, significant loss-absorption capacity, robust pre-impairment profitability, stable and extensive deposit base and low refinancing risk, the agency added.

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