Fitch: Almazergienbank view to stable

Fitch Ratings said it revised Almazergienbank's outlook to stable from negative and affirmed the long-term issuer default ratings at BB-.

Fitch said the outlook revision reflects the revision of that on the Republic of Sakha (Yakutia) (BBB-/stable), the bank's controlling shareholder.

The long-term issuer default ratings are underpinned by potential support the bank may receive, in case of need, from the regional authorities of Sakha. Fitch said its view on the probability of support is based on: (a) The authorities' majority ownership (78% stake) and operational control over the bank; (b) close association between the bank and regional administration (it is represented on the bank's board); (c) the track record of capital and liquidity support to date (including indirectly, through region-affiliated entities); and (d) the bank's limited size relative to Sakha's budget.

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