Fitch Ratings on Sept. 9 upgraded Russia-based SDM-Bank PJSC's long-term local-currency issuer default rating to BB from BB-, with a stable outlook.
Fitch also upgraded SDM-Bank's viability rating to "bb" from "bb-," while affirming the lender's B short-term issuer default rating, 5 support rating and No Floor support floor rating.
The upgrade reflects the Russian bank's extended track record of stable and profitable performance combined with good asset quality and capital metrics and solid liquidity buffers. The upgrade is also based on the bank's conservative business model and prudent risk management policy.
Fitch also noted that the ratings action reflects its view that the Russian operating environment has improved due to the implementation of a consistent and credible policy framework, which is expected to deliver improved macroeconomic stability and better resilience to shocks that will be beneficial for SDM Bank's credit profile.
