Fitch cuts Bank Centercredit

Fitch Ratings said it has downgraded the long-term issuer default ratings of Bank Centercredit and its subsidiary, Bank BCC-Moscow, to B from B+ and has withdrawn the ratings of the latter.

Fitch said it has also affirmed ATF Bank at B- with a stable outlook and Moskommertsbank, Kazkommertsbank's (KKB; B/stable) Russian subsidiary at CCC.

The downgrade of Bank Centercredit reflects the significant deterioration of its asset quality, according to the agency. The ratings also consider its moderate capitalization, weak profitability and greater reliance on National Bank of Kazakhstan funding following recent deposit outflows.

However, the ratings are supported by the bank's reasonable coverage of currently recognized problem loans, relatively conservative management and the generally supportive growth environment.

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