Fitch affirms Russian Agricultural Bank

Fitch Ratings said it affirmed Russian Agricultural Bank's long-term issuer default rating at BBB with a negative outlook.

The issuer default rating reflects the potential support from the Russian government (BBB/negative), according to the agency.

The bank's individual rating of D, which was also affirmed, is under pressure given the significant rise in loan impairments and the potential for further asset quality weakening due to continued rapid asset growth, the challenging operating environment, the highly unseasoned loan book and the large single industry exposure to the agribusiness sector, Fitch said.

The individual rating is supported by the reasonable capital position and comfortable liquidity, the agency noted.

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