- Sputnik International
World
Get the latest news from around the world, live coverage, off-beat stories, features and analysis.

Fitch downgrades Promsvyazbank's outlook to stable

Subscribe
MOSCOW, May 7 (RIA Novosti) - Fitch Ratings has revised Russia-based Promsvyazbank's outlook to stable from positive, the international rating agency said Monday.

"The change in outlook reflects the reduced likelihood that German-based Commerzbank AG will acquire a majority stake in Promsvyazbank following recent statements by Commerzbank representatives," Fitch said.

Fitch initially assigned the positive outlook in December 2006, after Commerzbank completed the acquisition of a 15% stake in Promsvyazbank and was expected to continue negotiations with the bank's main shareholders to seek control in the medium-term, the rating agency said.

The bank's ratings are affirmed at Issuer Default B+, Short-term B, Support 5 and Individual D, Fitch said.

"Promsvyazbank's ratings reflect significant balance sheet concentrations and risks inherent in the bank's rapid loan growth, which may also put pressure on liquidity and capitalization levels. However, Fitch also acknowledges the broadening of Promsvyazbank's franchise and regional coverage, improved funding profile and reduced related-party exposures and non-core assets. The ratings are also supported by the bank's acceptable profitability and asset quality to date," Fitch said.

Promsvyazbank, which is on the Central Bank of Russia's list of top 30 banks in terms of assets, is majority owned by the Ananyev brothers, who also have holdings in such areas as information technology, the media, insurance, the industrial sector and real estate.

Newsfeed
0
To participate in the discussion
log in or register
loader
Chats
Заголовок открываемого материала