Fitch Ratings demotes Absolut Bank’s rating

20 May 2009 (11:54)

The international rating agency decreased AKB Absolut Bank’s long-term Issuer Default Rating from BBB+ to BBB, with Negative rating outlook.

This decrease is actually a follow-up on Fitch’s demoting the bank’s parent enterprise KBC Bank’s rating down to A; besides, the lowered rating reflects the agency’s concerns over KBC Bank’s weakened financial status and its dependence on the state support. What is more, the bank’s ability to help its Russian daughter enterprise if necessary looks a bit dubious at the moment.

The Negative rating outlook indicates that KBCB’s own financial indicators keep going down, so this company is likely to grow more and more distanced from Absolut Bank in order to lessen its own risks.

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