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Fitch withdraws Novikombank's ratings

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Fitch withdraws Novikombank's ratings

FitchRatings on July 13 withdrew the ratings of Joint-Stock Commercial Bank Novikombank for businessreasons.

Priorto the withdrawal, the agency downgraded the lender's viability rating to"f" from "b-," reflecting Fitch's view that the bank hasfailed following a material capital shortfall. The agency said Novikombank's"Fitch core capital" was negative at the end of the first quarter,driven by significant impairment charges on problem loans and negative equityat subsidiary OJSCFundServiceBank.

Fitchmaintained the B- long-term foreign- and local-currency issuer default ratings,B short-term foreign-currency issuer default rating and BB-(rus) nationallong-term rating at Rating Watch Negative to reflect uncertainty over theextent of Novikombank's asset quality problems and whether recapitalizationmeasures to be provided by its parent, Russian corporation Rostec, will besufficient.

Inaddition, the rating agency affirmed the lender's support rating at 5 andsupport rating floor at No Floor.