Fitch puts Bank Zenit on positive watch

Fitch Ratings said it placed Bank Zenit's BB- long-term issuer default ratings on Rating Watch positive.

The agency also said it affirmed the bank’s viability rating at BB-.

The positive watch follows the increase of the ownership stake in the bank by PJSC Tatneft to 49% from less than 25% and the bank's management's expectation that the stake will increase to more than 50% by November as a result of the buy-out of some minority shareholders, Fitch said.

The bank also has a national long-term rating of A+ and short-term issuer default rating of B.

Fitch also placed on positive watch the bank’s senior unsecured long-term debt rating of BB- and senior unsecured national long-term rating of A+(rus).

Should Tatneft become a majority shareholder, its propensity to support the Bank Zenit will increase, the agency said.

But Fitch has not yet factored support from Tatneft directly into the ratings, although the bank's credit profile has benefitted from significant liquidity placements and capital injections from the company.

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