Fitch affirms VTB Bank

Fitch Ratings said it affirmed CJSC VTB Bank (Armenia)'s long-term foreign- and local-currency issuer default ratings at BB, short-term foreign- and local-currency issuer default ratings at B, individual rating of D/E and support rating at 3.

The outlook remains positive.

The ratings reflect the moderate probability of support from the company's sole shareholder, Russia's JSC Bank VTB (long-term issuer default rating of BBB+), the agency said.

The ratings also reflect the bank's small size by international standards, high loan concentration, significant loan impairment levels, rapidly growing and unseasoned retail loan book and modest profitability, Fitch said.

However, the rating also takes into account the bank's significant domestic franchise, sound capitalization and adequate liquidity position, the agency said.

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