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Fitch upgrades ratings of 4 Russian banks

Fitch Ratings on Aug. 19 upgraded the long-term issuer default ratings of Russian banks Primsotsbank, JSCB Chelindbank, Bank Avers and Levoberezhny to BB from BB-.

The agency also upgraded the long-term local-currency issuer default ratings of Levoberezhny and Bank Avers to BB from BB-. The outlooks on the long-term ratings are stable.

Also upgraded were the viability ratings of all the four banks to "bb" from "bb-."

The agency affirmed the banks' short-term issuer default ratings at B, their support ratings at 5 and the support rating floor at No Floor.

The upgrades reflect the lenders' continued performance stability, while maintaining prudent risk appetites and solid liquidity and capital buffers, according to the agency. It also reflects Russia's improved operating environment due to the implementation of a consistent and credible policy framework that the agency expects to prove to be beneficial for the banks' credit profiles, Fitch said.

The stable outlooks reflect Fitch's view that the four banks' asset quality metrics will remain relatively stable in the medium term, and that pre-impairment profit can absorb any potential damage to the asset quality without hitting capital buffers.