Fitch lifts Tinkoff Bank view to positive

Fitch Ratings said it revised the outlook on Tinkoff Bank's long-term issuer default ratings of BB- to positive from stable and affirmed all of the ratings.

The outlook revision reflects an expectation that continued business model diversification should result in even stronger profitability and less volatility through the credit cycle, Fitch said.

The positive view also considers the likely core capitalization improvement as the bank will need to hold more capital due to higher risk weights applied in regulatory accounts, the agency added.

The ratings are driven by the bank's standalone creditworthiness, which is reflected in its viability rating of BB-, Fitch said.

The ratings also reflect strong financial metrics, including a robust performance driven by current low funding and credit costs and comfortable liquidity position following the overall improvement of the operating environment, the agency said.

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