Fitch upgrades Liberbank

Fitch Ratings said it upgraded Liberbank, SA's long-term issuer default rating to BB+ from BB and viability rating to BB+ from BB.

The outlook is stable.

The upgrade reflects Liberbank's significant progress in reducing non-performing loans and foreclosed assets, which has resulted in a reduction of the bank's capital encumbrance from unreserved problem assets, Fitch explained.

The ratings also consider the now reduced risk from unreserved problem assets, the agency said.

The ratings also factor in the bank's sound regional franchise, adequate funding and liquidity profile and the challenge to improve operating profitability, Fitch said.

Liberbank's funding profile is supported by a stable and granular retail deposits base, which accounted for about 70% of the bank's total funding at year-end-2018, the agency said.

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