Fitch: Good plan for Parex banka

Fitch Ratings said the announced restructuring plan of Parex banka, which has a long-term issuer default rating of restricted default, would be positive for depositors if it succeeds.

The current RD rating reflects the deposit restrictions imposed on the bank, Fitch said, and may be upgraded on completion of the restructuring and the removal of the deposit restrictions.

The announced plan envisages spinning off two-thirds of Parex's assets into a new bank, which is expected to be granted a new banking license by the Latvian regulator, the agency said.

The current version of the plan, as Fitch said it understands, it assumes that the new bank will be created as a legally independent entity and will service existing customer accounts.

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