Fitch Ratings on Sept. 7 upgraded the long-term foreign-currency issuer default rating of Primsotsbank and the long-term foreign- and local-currency issuer default rating of Levoberezhny to BB- from B+.
The banks' viability ratings were upgraded to "bb-" from "b+," while those of LLC Bank Avers and JSCB CHELINDBANK were affirmed at "bb-."
The rating agency affirmed the long-term foreign-currency issuer default rating of CHELINDBANK and the long-term foreign- and local-currency issuer default rating of Bank Avers at BB-. The outlooks on the long-term ratings are stable.
The short-term foreign-currency issuer default ratings of the four Russian banks were affirmed at B. Also affirmed were the support ratings of 5 and the support rating floor of No Floor for all four banks.
The upgrades reflect asset quality stabilization of Primsotsbank and Levoberezhny, supported by a tightening of underwriting standards. The stable outlooks reflect Fitch's view that the four banks' asset quality metrics will remain reasonable in the medium term, and that pre-impairment profits can absorb any potential damage to the asset quality without hitting capital buffers.