Fitch ups some Russian banks

Fitch Ratings said it upgraded Alfa-Bank's and MDM Bank's long-term issuer default ratings to BB from BB- and upgraded Nomos Bank's long-term issuer default rating to BB- from B+. The agency also said it removed all three banks' from Rating Watch positive. A stable outlook was assigned. The agency also said it affirmed the long-term issuer default ratings of four other Russian banks, Promsvyazbank, Bank Zenit, JSC Russian Standard Bank and Bank Uralsib, along with the Uralsib Leasing Group, at B+. The agency said it removed all five entities from Rating Watch evolving and assigned a stable outlook, with the exception of Promsvyazbank, which was assigned a positive outlook.

These actions resolve the rating watches that Fitch placed on the banks' ratings in March.

The upgrades reflect the strengthening of certain aspects of Russia's banking system infrastructure during the global financial crisis, most notably in respect of banks ability to access liquidity, Fitch said.

The affirmations take into account the improvements in market infrastructure, but these banks' ratings are currently constrained by weaknesses in their individual credit profiles, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.