February 04, 2008 | Cbonds
|Fitch Ratings-London/Moscow- 04 February 2008: Fitch Ratings has today upgraded the ratings of Russia's Dalcombank (DCB) to Long-term Issuer Default (IDR) 'B+' from ‘B-’ (B minus), Support ‘4’ from ‘5’ and National Long-term 'A- (A minus)(rus)' from ‘BB- (BB minus)(rus)’.|
These ratings are all removed from Rating Watch Positive (RWP), where they were placed on 19 December 2007. Stable Outlooks are assigned to the Long-term IDR and National Long-term rating. The Short-term IDR is affirmed at ‘B’, and the Individual rating is affirmed at ‘E’.
These rating actions follow the recent completion of the acquisition of a 98.6% stake in the bank by Sistema JSFC (Sistema, rated ‘BB-’(BB minus)/Outlook Stable).
The upgrade reflects Fitch’s view of Sistema’s greater ability to provide DCB with support in case of need, compared to DCB’s previous majority shareholders. In December 2007 the bank received subordinated debt of RUB500m from Sistema, and in Q308 DCB plans a RUB1bn share issue, to be partly financed through the conversion of the subordinated debt.
DCB is a small-sized Russian bank based in Khabarovsk and with a broad presence in other regions of the far east of Russia. The bank is engaged in both corporate and retail lending, with the latter growing very rapidly.
|Full company name|
|Country of risk||Russia|
|Country of registration||Russia|