(Repeat for additional subscribers)
June 25 (The following statement was released by the rating agency)
Fitch Ratings has withdrawn Open Joint-Stock Company Bank 'Financial Corporation Otkritie's
(FCOB, formerly Nomos bank) and OTKRITIE Bank JSC's (OB) ratings as the banks have
chosen to stop participating in the rating process. The ratings have been withdrawn without
affirmation because the banks have not provided Fitch with sufficient information to enable
it to decide on appropriate rating levels. Fitch will no longer provide ratings
or analytical coverage of FCOB and OB.
Fitch notes that the key areas of concern in respect to the banks' credit
profiles remain (i) contagion risk from the large debt and high double leverage
at the parent Otkritie Holding and other holding companies, as the banks may be
forced to upstream capital and/or funding to help service or refinance holdco
debt; and (ii) high related-party and relationship exposures at both banks. The
agency also notes risks in OB's challenging strategy of developing unsecured
retail lending in a market already showing signs of overheating.
The following ratings have been withdrawn without affirmation:
Open Joint-Stock Company Bank 'Financial Corporation Otkritie' (formerly Nomos
Long-term foreign currency IDR: 'BB-'; Outlook Negative
Short-term foreign currency IDR: 'B'
Local currency Long-term IDR: 'BB-'; Outlook Negative
Viability Rating: 'bb-'
Support Rating: '4';
Support Rating Floor: 'B'
National Long-term rating: 'A+(rus)'; Outlook Negative
Senior unsecured debt: 'BB-'
Senior unsecured debt of Nomos Capital plc : 'BB-'
Senior unsecured local debt: 'A+(rus)'
Subordinated debt: 'B+'
Long-term Issuer Default Rating: 'B'; Outlook Stable
Short-term Issuer Default Rating: 'B'
Long-term local currency Issuer Default Rating: 'B'; Outlook Stable
Viability Rating: 'b'
Support Rating: '4'
Support Rating Floor: 'NF'