Fitch affirms SKB-Bank

Fitch Ratings said it affirmed SKB-Bank's long-term foreign-currency issuer default rating at B- and short-term foreign-currency issuer default rating at B following the acquisition of the failed Sverdlovsky Gubernsky Bank by Sinara Group, a holding company affiliated with SKB.

The outlook is stable.

Sverdlovsky Gubernsky Bank was forced to seek external support after a liquidity squeeze caused by an outflow of customer deposits and interbank funding, Fitch said. Sinara acquired a 75% stake in Sverdlovsky Gubernsky Bank in a deal brokered by the state-owned Deposit Insurance Agency.

Fitch said it was informed that SKB-Bank will not incur any financial obligation through Sinara's acquisition and it does not plan on providing any funding to Sverdlovsky Gubernsky Bank.

But, the banks may be merged in the future, the agency said. Fitch said it believes a merger could increase risks for SKB-Bank's creditors in light of Sverdlovsky Gubernsky Bank's weaker credit profile.

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