Fitch ups Sovcombank, Rosevrobank

Fitch Ratings said it upgraded PJSC Sovcombank's and its subsidiary Rosevrobank's long-term issuer-default ratings to BB from BB-.

The outlooks are stable.

The agency said the upgrade of Sovcombank reflects the completion of the acquisition of Rosevrobank without a significant weakening of Sovcombank’s regulatory capital position or realization of any contingent risks.

“More generally, the upgrade reflects the bank's extended track record of sound financial metrics, and the more balanced business mix and improved funding profile resulting from the acquisition of REB,” Fitch said in a news release.

“At the same time, the ratings remain constrained by SCB's exposure to the difficult Russian operating environment, its high appetite for non-organic growth and exposure to interest rate risk stemming from the bank's sizable securities portfolio.”

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