RPT-Fitch assigns Nomos' RUB BO-6 bonds 'BB-' rating
(Repeat for additional subscribers)
Oct 16 (Reuters) - (The following statement was released by the rating agency)
Fitch Ratings has assigned NOMOS-Bank's (Nomos) RUB7bn senior unsecured fixed-rate exchange bond issue (BO-6 series), with a final maturity on 8 October 2016 and a put option after one year, a Long-term rating of 'BB-' and National Long-term Rating of 'A+(rus)'.
KEY RATING DRIVERS
The issue's ratings are driven by Nomos' Long-term local currency Issuer Default Ratings (IDRs) of 'BB-' with a Negative Outlook and a National Long-term Rating of 'A+(rus)' with a Negative Outlook.
These in turn reflect Nomos' material related party and relationship exposures following the takeover by Otkritie Financial Corporation (OFC), and significant contingent risks resulting from high overall group leverage. However, the ratings continue to be supported by the bank's sound performance, low level of non-performing loans (NPLs) and generally adequate liquidity. The Negative Outlook reflects the potential for the ratings to be downgraded further if OFC is unable to raise equity to reduce its leverage, and Nomos's balance sheet is further weakened by the need to support OFC or other group entities. For more information please see "Fitch Downgrades Russia's NOMOS BANK to 'BB-'; Affirms OTKRITIE at 'B'" as of 02 August 2013 at www.fitchratings.com.
Downward pressure on Nomos' Long-term IDRs, and consequently the issue's ratings, could arise if OFC is unable to raise equity to reduce group leverage, and Nomos's balance sheet is further weakened by the need to support OFC or other group entities. A further material increase in higher-risk related party or relationship lending, or general continued rapid loan growth, resulting in lower capital ratios, could also result in a downgrade. A reduction in group leverage and related party exposures would help the ratings to stabilise at their current levels.
- U.S. Mega Millions lottery up to $400 million, 2nd-biggest ever
- Uruguay becomes first country to legalize marijuana trade
- Pope Francis named Time's Person of the Year
- Thousands of South Africans line up to see Mandela lie in state |
- China bitcoin arbitrage ends as traders work around capital controls