Fitch ups Promsvyazbank

Fitch Ratings said it upgraded the long-term rating of Promsvyazbank to B from B-. Following the upgrade, the outlook is now stable. The other ratings have been affirmed at short-term B, individual D and support 5.

Fitch said the upgrade reflects the continued growth and development of the bank's business and the improving operating environment in Russia. In addition, the ratings reflect the bank's competitive cost base and adequate capitalization. The latter should remain at a reasonable level, even with expected rapid balance sheet growth, as a result of future planned capital injections and internal capital generation.

However, Fitch also noted the relatively low reserve coverage of the bank's rapidly expanding loan portfolio, the high concentration on both sides of the balance sheet and its moderately high market risk appetite.

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