Fitch Affirms MKB Ratings at 'BB', Outlook Negative

Fitch Affirms MKB Ratings at 'BB', Outlook Negative

Fitch Affirms MKB Ratings at 'BB', Outlook Negative

The international rating agency Fitch Ratings has confirmed the long-term issuer default ratings of Credit Bank of Moscow (MCB) at 'BB'.

According to the agency's press release, the forecast is “negative”.

At the same time, the bank's VR was raised to 'bb' from 'bb-'.

The Short-term IDR was affirmed at 'B', the support rating is '4', and the senior unsecured debt rating is 'BB'.

The change in VR is due to the continued decline in the bank's high-risk assets, which is currently moderate compared to the size of capital and has begun to have a less significant negative impact on MKB's ratings.

The Negative Outlook for Long-term IDRs continues to reflect potential pressure on MKD's financial profile from the pandemic, falling oil prices and, as a result, the economic downturn in Russia.

According to the results of the second quarter of 2020, MKB ranked 6th in terms of assets in the Interfax-100 ranking prepared by Interfax-CEA.

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