PRIME-TASS. International rating agency Fitch raised its long-term issuer default rating on SDM-Bank by a notch from B to B+, with a stable outlook, the agency said in a press release.
The agency also affirmed long-term ratings on Chelyabinsk-based Chelindbank to BB-, and those on RosEuroBank and Locko-Bank at B+ and SKB-Bank at B. All the ratings carry a stable outlook.
The ratings assigned to all five banks reflect the limited clientele and uncertainty surrounding long-term sustainability of its business models and management. At the same time, the banks’ ratings take into account strong financial indicators.
Chelindbank’s higher rating is also reflective of its good capability to absorb losses, conservative governance and a more stable client base. SKB-Bank’s lower rating, compared to other banks, reflects the high risk associated with retail credit products and relatively limited capitalization.
