Fitch ups Industrialbank to B-

Fitch Ratings said it upgraded JSCB Industrialbank's ratings to issuer default B- from CCC and to short-term B from C and removed them from Rating Watch evolving. The bank's other ratings were affirmed at individual D/E and support 5 and removed from Rating Watch.

The outlook is stable.

This upgrade reflects the bank's improved diversification geographically and by customer and sector following the merger with MT Bank, Fitch said, adding that integration risks appear to have been managed. The merger should mean that the bank is better placed to expand its franchise and achieve some economies of scale, although competition remains intense, the agency said.

The bank's ratings continue to reflect its high-risk operating environment, small size and moderate franchise, Fitch said. Although reasonable at present, the agency said the bank's capitalization is set to fall due to planned growth.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.