Fitch cuts International Industrial Bank

Fitch Ratings said it revised International Industrial Bank's long-term foreign- and local-currency issuer default ratings to D from RD, along with its short-term foreign-currency issuer default rating to D from RD. The agency also said it downgraded the recovery rating assigned to the bank's senior unsecured debt to RR5 from RR4 while affirming the senior unsecured debt rating at C.

The agency also said it revised the bank's national long-term rating to D(rus) from RD(rus), and affirmed its senior unsecured domestic debt at C(rus).

The ratings revision reflects the full cessation of the bank's business activity following the revocation of its banking license and entry into external administration, Fitch said.

The downgrade reflects the view that recoveries for senior unsecured creditors in the now likely liquidation scenario will probably be below average, or in the range of 11% to 30%, the agency said.

The bank has weak asset quality, given the limited cash generation of its loan book and the generally unsecured nature of the bank's lending, Fitch added.

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