Fitch drops International Industrial Bank

Fitch Ratings said it downgraded International Industrial Bank's long-term foreign- and local-currency issuer default ratings to CCC from B and maintained the ratings on Rating Watch negative, along with its senior unsecured debt to CCC from B with a recovery rating of RR4, short-term foreign-currency issuer default rating to C from B and national long-term rating to CCC(rus) from BBB(rus). The short-term foreign-currency issuer default rating was removed from Rating Watch negative.

The downgrade reflects the absence of any resolution of the bank's liquidity problems since the ratings were first placed on negative watch on June 9, Fitch said. The agency said there has been no clarification on a coherent plan to strengthen liquidity ahead of the bank's upcoming debt repayments, including the €200 million eurobond repayment due on July 6.

The downgrade also considers the reportedly stricter position of the Central Bank of Russia, which may consider not rolling over existing unsecured loans to the bank, Fitch added.

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