Fitch downgrades Cartu Bank

Fitch Ratings said it downgraded Cartu Bank's long-term issuer default rating to B from B+.

The outlook is stable.

Fitch also said it affirmed the long-term issuer default rating of another Georgian bank, Basisbank, at B+ with a stable outlook.

The ratings are driven by their standalone strength as expressed by their viability ratings of B+ on Cartu and B rating on Basisbank, the agency said.

The downgrades reflect the bank's weakened asset quality and profitability metrics, Fitch said.

They do not compare favorably with peers and are no longer commensurate with a B+ viability rating, which could put pressure on the bank's capitalization, the agency said.

The ratings also consider the banks' reasonable asset quality and a solid capital cushion, Fitch said.

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