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Fitch: Probusinessbank outlook negative
Fitch Ratings said it revised Probusinessbank's outlook to negative from stable and affirmed its ratings, including the B- long-term and B short-term foreign-currency issuer default ratings, B- long-term local-currency issuer default rating, BB(rus) national long-term rating, 5 support rating, "No Floor" support floor and D/E individual rating.
The agency said the negative outlook reflects increased credit and operational risks associated with Probusinessbank's acquisition of a second distressed regional bank, Bank24.ru, following its earlier purchase of Gazenergobank. Asset quality in both banks seems to be weak, Fitch said, and the acquisitions are likely to divert resources away from the management of the group's other four banks.
Liquidity risk, however, should be minimal because funding received from the Deposit Insurance Agency to support the takeovers was substantial relative to the banks' balance sheets, the agency said, and Fitch noted that Probusinessbank has successfully integrated three regional banks in the past.
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