09 March 2010, Tuesday, 15:09

Fitch Ratings places “MDM-Bank” into the list “Rating Watch” (Positive)

author: Elvira Latypova

The international rate agency “Fitch Ratings” placed “MDM-Bank” into the list “Rating Watch” (Positive), thus changing the bank’s forecast “Stable” for the “Rating Watch” (Positive). As a result, the long-term rate of “MDM-Bank” is changed from “BB” (Stable) to “BB” (Rating Watch “Positive). At the same time the long-term rate of the bank on the national scale is altered to “A+ (rus)” (Rating Watch “Positive”) from “A+ (rus)” (Stable).

The status “Rating Watch” (Positive) proves the expectations of “Fitch” that in the course of three months after the completion of the analysis the bank’s rate will be raised with rather high probability.

In opinion of “Fitch” this rate action demonstrates the ability of “MDM-Bank” to get the access to liquidity in case of necessity and the bank’s readiness to stand rather substantial stress in sphere of its assets’ quality, stipulated for the crisis, without the necessity of its extraordinary support with either the shareholders’ capital or by the Russian authority.

In opinion of the bank’s leadership the rise of the forecast on the credit rate shows high level of capitalization, strong liquidity positions and the ability to absorb the bank’s losses.

themes: banks, rates