Fitch Ratings promotes MDM Bank
1 June 2010 (09:17)
The international rating agency raised OAO MDM Bank’s long-term Issuer Default Rating from BB- to BB. The long-term national rating was upped from A(rus) to A+(rus). Besides, Fitch took the bank off its Positive Rating Watch list and gave its long-term IDR Stable rating outlook.
All these changes have meant that MDM Bank proved to be capable of coping with a serious stress of the recession without losing on asset quality or relying too heavily on its capital support. Also, the bank is evidently able to absorb its losses at the moment.
‘MDM Bank’s impressive market capitalization was the proof that the company could absorb its bad debt losses at 29% at the end of the first quarter of 2010 before its capital adequacy indicators dropped below the legal minimum of 10%. What is more, MDM Bank’s stockholders declared they were prepared to give as much as $500m in case this was necessary to support the stable 12% capital adequacy level,’ Fitch reports.
All these changes have meant that MDM Bank proved to be capable of coping with a serious stress of the recession without losing on asset quality or relying too heavily on its capital support. Also, the bank is evidently able to absorb its losses at the moment.
‘MDM Bank’s impressive market capitalization was the proof that the company could absorb its bad debt losses at 29% at the end of the first quarter of 2010 before its capital adequacy indicators dropped below the legal minimum of 10%. What is more, MDM Bank’s stockholders declared they were prepared to give as much as $500m in case this was necessary to support the stable 12% capital adequacy level,’ Fitch reports.
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