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RPT-Fitch Withdraws Bank 'Financial Corporation Otkritie' & Otkritie Bank's Ratings Without Affirmation
June 25, 2014 / 10:17 AM / 3 years ago

RPT-Fitch Withdraws Bank 'Financial Corporation Otkritie' & Otkritie Bank's Ratings Without Affirmation

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June 25 (Reuters) - (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Fitch Ratings has withdrawn Open Joint-Stock Company Bank ‘Financial Corporation Otkritie’s (FCOB, formerly Nomos bank) and OTKRITIE Bank JSC’s (OB) ratings as the banks have chosen to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 The ratings have been withdrawn without affirmation because the banks have not provided Fitch with sufficient information to enable it to decide on appropriate rating levels.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The following ratings have been withdrawn without affirmation: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 bank)

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+’

OB

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’

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