Fitch Places Probusinessbank on RWN
(The following statement was released by the rating agency) MOSCOW/LONDON, October 15 (Fitch) Fitch canada goose store Ratings has placed Russian based Probusinessbank’s (PBB) ratings, including 2018 canada goose outlet its ‘B’ Long term Issuer Default Rating (IDR), on Rating Watch Negative (RWN) https://www.officialcanadagoosesoutlet.ca . A full list of rating actions is at the end of this commentary. KEY cheap Canada Goose RATING Canada Goose Parka DRIVERS The RWN primarily reflects Fitch’s concerns about the liquidity of the bank’s securities book, given that it is virtually all held canada goose deals outside of Russia and has largely not been traded or refinanced over an canadian goose jacket extended period of time. The RWN also reflects uncertainty concerning the recent review of the Canada Goose Coats On Sale bank by the Central Bank of Russia (CBR) and the potential impact of the recent licence withdrawal from a sister bank canada goose black friday sale . PBB’s consolidated securities book increased to RUB47bn (27% of group assets) at end 1H14 from RUB42bn (25%) at end 2013 and RUB27bn (15%) at end 2012. The portfolio is virtually all canada goose replica held on PBB’s balance sheet Canada Goose Online (comprising 48% of standalone assets at end 8M14), and Russian government bonds make up the bulk of the book. Unlike most banks in the sector, PBB (i) pledges only a small amount of its securities (about RUB3bn on average) to obtain repo funding from CBR; (ii) holds a portfolio with canada goose coats relatively long duration of around three to four years, compared with peers’ typical 1 1.5 years; and (iii) holds a large majority of the portfolio (RUB42bn) in two Cyprus based custodians which are subsidiaries of Russian privately owned brokers, in contrast to most Russian banks, which keep their government bonds in the National Reserve Depositary (NRD, a subsidiary of the Moscow Stock Exchange) in order to be able to obtain CBR repo funding. In Fitch’s view, the canada goose economic rationale for holding such a large unrepoed securities book is somewhat unclear. The agency therefore believes it is necessary to further investigate the nature of these holdings and any potential impact it might canada goose clearance sale have on its assessment of the bank’s liquidity, asset quality and solvency. According to management, PBB and other group banks were reviewed by the CBR in August, and the results of that review should be available soon. PBB’s ‘B’ Long term IDR and ‘b’ Viability Rating reflect the bank’s solid reported pre impairment profitability and liquidity. However, the ratings also consider the bank’s moderate capitalisation, increased credit losses canada goose outlet toronto factory in the bank’s retail loan portfolio and contingent risks relating to the acquisition in 1Q14 by the buy canada goose jacket cheap bank’s shareholders of a smaller, failed Russian bank, Solidarnost. RATING SENSITIVITIES To resolve the canada goose clearance RWN, Fitch will seek further clarification on the nature of the bank’s securities holdings and consider the impact canada goose coats on sale of this on the bank’s Canada Goose sale liquidity, asset quality canada goose outlet store locations and solvency. The agency will also assess the results of the CBR review. The ratings may be downgraded (potentially by more than one notch) if Fitch believes the securities book is not readily available to the bank as a potential source of liquidity, or if other significant risks arise as a result of the CBR review. However, the ratings may be affirmed if concerns relating to the securities Canada Goose online book are alleviated and the CBR review does not identify any new, material issues. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE Canada Goose Jackets FROM THIS SITE AT ALL TIMES. FITCH’S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE ‘CODE OF CONDUCT’ SECTION OF THIS SITE. FITCH MAY HAVE Canada Goose Outlet PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS canada goose black friday sale OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN buy canada goose jacket AN EU REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.