The US credit rating company Fitch has improved its rating of Russia's Uralsib Bank to 'BB-' from 'B+, the agency said in a statement on Wednesday
WASHINGTON (Pakistan Point News / Sputnik - 27th November, 2019) The US credit rating company Fitch has improved its rating of Russia's Uralsib Bank to 'BB-' from 'B+, the agency said in a statement on Wednesday."Fitch Ratings has upgraded Uralsib Bank's (Uralsib) Long-Term Issuer Default Rating (IDR) to 'BB-' from 'B+'," the statement said. "The Outlook is Stable. A full list of rating actions is detailed below."
Fitch explained this rating is "driven by its intrinsic strength, as expressed by its Viability Rating (VR)."
"The upgrade of Uralsib reflects the stabilization of the bank's asset quality, its strengthening capitalization and an improved operating environment in Russia," it noted. "The ratings are also supported by Uralsib's stable funding profile and ample liquidity. Uralsib's SR of '5' and SRF of 'No Floor' reflect Fitch's view that extraordinary support from the state authorities cannot be relied upon, given the bank's limited systemic importance."
The agency noted that Uralsib is mainly deposit-funded with a focus on retail clients.
Fitch pointed out that a further upgrade of Uralsib's ratings "would require an extended track record of sound credit underwriting, improvement in profitability, and a strengthening of the bank's regulatory capital."
It continued to say that the ratings could be downgraded if asset quality weakens, stressing that Fitch considers it unlikely in the near-term.
