Fitch Ratings has affirmed AK BARS Bank's (ABB) Long-term Issuer Default Rating (IDR) at 'BB-' and revised the outlook to Stable from Negative.
AK BARS’ IDR affirmation and outlook revision prove AK BARS’ stable performance as well as positive perspective trend.
Key factors contributing to positive revision are: the moderate support which has been made available to the bank by its main controlling shareholder, the Republic of Tatarstan’s (RT; 'BBB−'/Stable); decrease in investment properties stabilising high-risk assets.
AK BARS’ IDR, senior debt, National and Support Ratings continue to reflect Fitch’s view of the moderate probability of support from RT. This view is based on (i) ABB’s considerable market shares in the region, (ii) its large deposit base, (iii) RT’s ultimate control over the bank, (iv) the close association between the local authorities and the bank and (v) significant non-equity funding made available to AK BARS BANK by the local government and government-related entities.
IDR affirmation and outlook change are, undoubtedly, positive developments. In the mean time, the Bank will take Fitch Rating’s comments into account and will initiate measures to maintain its positive rating trend.
AK BARS Bank (Open JointStock Company) is registered with the Central Bank of Russia and has been operating successfully on the Russian financial market since 1993.
AK BARS is an authorized Bank of the Government of the Republic of Tatarstan.
The Bank has all kinds of Russian banking operating licencies providing more than 100 services for corporate and private clients. The Bank’s stability is garanteed with paid-up authoriesd capital to the amount of 28.2 billion rub.
The Bank has extensive branch network in Tatarstan and across 33 regions in Russia. AK BARS Bank ranked 9th largest distribution network in Russia with 43 branches and 347 other offices (Central Bank of Russian Federation, as of 1st April, 2013 excluding Sberbank network).
AK BARS Bank is listed amongst Russia’s Top-20 banks. It was rated 17th in terms of equity and 17th in terms of assets out of all Russian banks (according to ‘Profile’ magazine as of 01.03.2013).
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