Fitch upgrades 3 Russia banks

Fitch Ratings said it upgraded Bank Saint Petersburg PJSC's and Credit Bank of Moscow's long-term issuer default ratings to BB from BB-.

The agency also said it upgraded Bank Saint Petersburg’s viability rating to BB from BB- and Credit Bank of Moscow to BB- and B+.

Fitch also said it revised the outlook on PJSC Sovcombank's long-term issuer default rating of BB to positive from stable.

The upgrades reflect a significant reduction in the volume of high-risk assets over the last two years due to active workouts and sales and provisioning, the agency said.

This happened while the company preserved reasonable capital levels, Fitch said.

The remaining volume of net high-risk assets is now more manageable, as risks are expected to be adequately covered by sound pre-impairment profit without impacting capital, the agency said.

The upgrades reflect its extended record of stable performance and conservative risk appetite, Fitch said, as well as gradual improvement of the bank's core capitalization.

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