Fitch may up BIN Bank

Fitch Ratings said it placed BIN Bank's long-term issuer default rating of B- and national long-term rating of BB(rus) on Rating Watch positive. The agency also affirmed the short-term issuer default rating at B, individual rating at D, support rating at 5 and support rating no floor.

The agency said BIN's financial profile has improved sufficiently to warrant a long-term issuer default rating of B, but that residual political risks relating to the bank's current ownership continue to constrain the rating at the B-.

Fitch said that after the sale, which should reduce the ownership risk, it will likely upgrade the long-term issuer rating to B.

BIN has made progress in diversifying its franchise both by segment and geographically, the agency said.

Profitability has improved due to stronger core revenues resulting from business diversification, but performance remains constrained by high operating overheads and funding costs, Fitch said.

BIN's credit profile is also supported by low loan impairment levels to date and more prudent liquidity management, the agency said.

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