Fitch keeps Orgresbank on positive watch

Fitch Ratings said it kept Russia-based Orgresbank's B- issuer default rating, B short-term rating, 5 support rating and BB+(rus) national long-term rating on Rating Watch positive and affirmed the individual rating at D.

The continuation of the ratings watch follows the completion of a full review of Orgresbank's financial position and reflects the bank's limited franchise, concentrations on both sides of the balance sheet and modest profitability, the agency said.

The ratings were first placed on watch on Nov. 8 following the announcement that Nordea Bank AB will purchase a controlling stake in Orgresbank to reflect the increasing probability of support for the bank should the transaction go through. Fitch said it believes that Orgresbank's standalone financial position could also benefit significantly from this transaction mainly through improved funding and access to Nordea's product and risk management expertise.

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