Fitch Rates Bank of the Russian Snezhinskiy rating B-, outlook negative

Fitch Ratings has assigned the Bank "Snezhinskiy" of long-term issuer default rating (IDR) in foreign currency at a level "B-" (B minus) with Negative Outlook. Ratings reflect the small size and narrow customer base of the bank, significant levels of portfolio concentration in combination with visible risk of experiencing difficulties in real estate and construction, as well as take into account short-term and non-diversified funding base of the bank and deteriorating asset quality, the agency said. At the same time, the experts draw attention to the fairly good performance of bank profitability and acceptable capitalization, which provides a "safety cushion" in case of a potential further deterioration in asset quality.