December 22, 2017 / 12:02 PM / a year ago

Fitch Withdraws Orient Express Bank's Ratings

(The following statement was released by the rating agency) MOSCOW, December 22 (Fitch) Fitch Ratings has withdrawn Russia-based Orient Express Bank's (OEB) ratings, including its 'CCC' Long-Term Issuer Default Ratings (IDRs) on Rating Watch Evolving (RWE), for commercial reasons. Accordingly, Fitch will no longer provide ratings or analytical coverage for OEB. A complete list of rating actions is at the end of this commentary. KEY RATING DRIVERS Fitch has withdrawn the bank's Long-Term IDRs and Viability Rating (VR) without resolving the Rating Watch as the proposed new Bank Rating Criteria, which drove the Watch, has not yet been published. As outlined in the Exposure Draft of the Criteria, Fitch plans to introduce + and - modifiers at the 'CCC'/'ccc' level for Long-Term Issuer Default Ratings (IDRs), long-term international debt and deposit ratings, Derivative Counterparty Ratings (DCRs) and VRs. There have been limited changes in OEB's credit profile since our review on 1 November 2017. The ratings mainly capture Fitch's view that the quality of the bank's capital has weakened markedly following the merger with Uniastrumbank due to the resulting significant exposure to investment property, non-traded equities and high-risk corporate loans, which may be a source of negative mark-to-market adjustments or impairment in the future. For more details see ' Fitch Takes Rating Actions on Four Russian Consumer Banks', dated 1 November 2017, on www.fitchratings.com. RATING SENSITIVITIES Rating Sensitivities are not applicable as the ratings have been withdrawn. The rating actions are as follows: Foreign- and Local-Currency Long-Term IDRs: 'CCC' on RWE; withdrawn Short-Term Foreign-Currency IDR: affirmed and withdrawn at 'C' Viability Rating: 'ccc' on RWE; withdrawn Support Rating: affirmed and withdrawn at '5' Support Rating Floor: affirmed and withdrawn at 'No Floor' Contact: Primary Analyst Alyona Agrenenko Associate Director +7 495 956 2409 Fitch Ratings CIS Ltd 26 Valovaya Street Moscow 115054 Secondary Analyst Ilya Sarzhin Analyst +7 495 956 9983 Committee Chairperson James Watson Managing Director +7 495 956 66 57 Media Relations: Julia Belskaya von Tell, Moscow, Tel: +7 495 956 9908, Email: julia.belskayavontell@fitchratings.com; Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. 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