Fitch downgrades International Industrial Bank

Fitch Ratings said it downgraded International Industrial Bank's long-term foreign- and local-currency issuer default ratings and senior unsecured debt to C from CCC and its national long-term rating to C(rus) from CCC(rus) and removed them from Rating Watch negative.

The agency affirmed the short-term foreign-currency issuer default rating at C, individual rating at E, support rating at 5 and support rating floor at "No Floor."

The downgrade reflects Fitch's understanding that the bank may not currently be servicing all of its obligations in a full and timely manner and that the bank is in the process of negotiating a restructuring of its obligations to the Central Bank of Russia, some of which are currently overdue.

Fitch said the long-term issuer default rating could be downgraded to RD or D if the failure of the bank to meet its current obligations is confirmed and remains unremedied or if the bank fails to repay the €200 million eurobond due on July 6, 2010.

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