Fitch affirms Moscow Bank of Reconstruction

Fitch Ratings said it affirmed Moscow Bank for Reconstruction and Development's ratings at issuer default B, national long-term BBB-(rus), short-term B, individual D/E and support 4.

The outlook remains positive.

The ratings are underpinned by the potential support from the bank's majority shareholder, AFK Sistema JSFC (B+ with positive outlook), Fitch said.

The individual rating reflects risks associated with the high concentration in both the bank's loan book and client funding, particularly with related parties from the Sistema group, as well as its weak capitalization, the agency said. It also takes into account the bank's modest performance due to a high proportion of low-yielding liquid assets and significant credit risk costs.

Fitch said the rating also factors in the bank's relatively good asset quality to date and reasonable liquidity.

© 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.