Long-term foreign and local currency IDR - ‘BB+’, positive outlook
Short-term IDR - 'B'
Sustainability Rating - 'b-'
Support Rating - ‘3’
Senior Debt Rating - 'BB+'

FITCH RATING ACTION

On 26 November 2018, Fitch affirmed the Foreign and Local Currency Issuer Default Ratings (IDRs) of Russian Agricultural Bank at 'BB+'. The affirmation of Rosselkhozbank's Long-term IDR and Support Rating Floor reflects Fitch's assessment of the very high willingness of the Russian authorities to provide support to the Bank if needed.

Rating action by Fitch

The affirmation of Rosselkhozbank's Long-term IDR and Support Rating Floor reflects Fitch's assessment of the very high willingness of the Russian authorities to provide support to the Bank if needed.

• Long-term foreign and local currency IDR affirmed at 'BB+', outlook Positive
• Short-term foreign currency IDR affirmed at 'B'
• Viability rating affirmed at 'b-'
• Support rating affirmed at '3'
• Long-term IDR Support Level affirmed at 'BB+'
• Senior Unsecured Debt: Ratings Affirmed at 'BB+'
• RSHB Capital S.A. Senior Unsecured Debt: Ratings Affirmed at 'BB+'

Rating action by Fitch

On September 28, 2017, Fitch upgraded the outlook on the ratings of 23 Russian financial institutions, including Russian Agricultural Bank JSC, from Stable to Positive. The rating upgrade reflects a positive reassessment of the likelihood of financial support from the Russian authorities for state-owned banks.

The agency also affirmed the long-term issuer default ratings (IDRs) of Rosselkhozbank JSC at current levels.

• Long-term foreign and local currency IDR affirmed at 'BB+', Outlook upgraded to Positive from Stable
• Short-term foreign currency IDR at 'B' unaffected by rating action
• Viability rating at 'b-' unaffected by rating action
• Support rating at '3' not affected by rating action
• Support Rating Floor at 'BB+' not affected by rating action
• 'BB+' senior unsecured debt not affected by rating action

Rating action by Fitch

On February 6, 2017, Fitch affirmed the national ratings of Russian banks, including JSC Rosselkhozbank, and simultaneously withdrew these ratings. The national ratings affirmation reflects limited changes since the last revision. National Scale Ratings Withdrawn as Fitch withdrew National Scale Ratings in Russia due to changes in the regulatory environment for credit rating agencies in the country.

Long-term foreign and local currency IDR at 'BB+', outlook Stable; not affected by the rating action

Short-term foreign currency IDR at 'B'; not affected by the rating action

Support Rating Floor at 'BB+'; not affected by the rating action

Senior unsecured debt 'BB+'; not affected by the rating action

Rating action by Fitch

On 7 December 2016, Fitch affirmed the Foreign and Local Currency Issuer Default Ratings (IDRs) of Russian Agricultural Bank JSC at 'BB+'. The affirmation of Rosselkhozbank's Long-term IDR and Support Rating Floor reflects Fitch's assessment of the very high willingness of the Russian authorities to provide support to the Bank if needed.

• Long-term foreign and local currency IDR affirmed at 'BB+', outlook Stable
• Short-term foreign currency IDR affirmed at 'B'
• Viability rating affirmed at 'b-'
• Support rating affirmed at '3'
• Long-term IDR Support Level affirmed at 'BB+'

Rating action by Fitch

On October 21, 2016, Fitch affirmed the Issuer Default Ratings (hereinafter - IDR) and debt ratings of JSC Russian Agricultural Bank and upgraded the outlook on the ratings from Negative to Stable. The upgrade in rating outlooks reflects a positive reassessment of the risk of a decline in the state's ability to provide support.

The affirmation of the Long-term IDRs and the Long-term IDR Support Floor at 'BB+' reflects Fitch's assessment of the high willingness of the Russian authorities to provide support to the Bank, should the need arise, taking into account the following factors:

• The Bank plays an important role in the ongoing policy to support the agricultural sector;
• History of support to the Bank;
• High reputational risks for the state in the event of a potential default by the Bank.

• Long-term foreign and local currency IDR affirmed at 'BB+', Outlook upgraded to Stable from Negative
• Short-term foreign currency IDR affirmed at 'B'
• 'b-' VR not affected by rating action
• National Long-term rating affirmed at 'AA+(rus)', outlook Stable
• Support rating affirmed at '3'
• Long-term IDR Support Level affirmed at 'BB+'
• Senior unsecured debt: affirmed at 'BB+'/'AA+(rus)'
• Senior unsecured debt of RSHB Capital S.A.: ratings affirmed at 'BB+'/'AA+(rus)'

Rating action by Fitch

On December 10, 2015, Fitch Ratings affirmed the Long-term Issuer Default Rating (hereinafter referred to as the IDR) of Rosselkhozbank JSC at 'BB+'. The affirmation of Rosselkhozbank's Long-term IDR at 'BB+' reflects Fitch's assessment of the very high willingness of the Russian authorities to support the Bank if necessary, given the following factors: 

The bank is 100% owned by the state;

The Bank plays an important role in the ongoing policy to support the agricultural sector; 

History of support to the Bank, including the most recent major capitalization through the acquisition by the State Deposit Insurance Agency of an issue of preferred shares classified as core capital. Fitch views this instrument as good quality capital to cover losses and 100% equals it to equity; 

High reputational risks for the Russian authorities in the event of a potential default by the Bank.

Long-term foreign currency IDR affirmed at 'BB+', outlook Negative; 

Long-term local currency IDR affirmed at 'BB+', outlook Negative; 

Short-term foreign currency IDR affirmed at 'B'; 

Support Rating Floor affirmed at 'BB+'; 

Rating action by Fitch

On February 13, 2015, Fitch Ratings affirmed the Viability Rating of Russian Agricultural Bank at 'b-'.

• Long-term foreign currency IDR 'BB+', outlook Negative, unaffected by rating action
• Long-term local currency IDR 'BB+', outlook Negative, unaffected by rating action
• Short-term foreign currency IDR 'B' unaffected by rating action
• Viability rating affirmed at 'b-'
• National Long-term rating 'AA+(rus)', outlook Stable, unaffected by rating action
• '3' Support Rating not affected by rating action
• Support Rating Floor of 'BB+' not affected by rating action
• Senior unsecured debt: 'BB+' and 'AA+(rus)' ratings unaffected by rating action
• RSHB Capital S.A. senior unsecured debt: 'BB+' and 'AA+(rus)' ratings unaffected by rating action
• RSHB Capital S.A. Legacy Subordinated Debt: 'BB' rating unaffected by rating action.

Rating action by Fitch

On January 16, 2015, Fitch Ratings downgraded the long-term foreign currency issuer default ratings (IDRs) and debt ratings of 30 Russian and Russian-owned financial institutions by one notch. These rating actions follow a downgrade of Russia's sovereign ratings and a change in the Country Ceiling.

The downgrade of Russian Agricultural Bank to 'BB+' from 'BBB-' and the downgrade of the Long-term IDR reflect Fitch's view that the Russian Federation's financial flexibility and, as a result, the ability to provide support to the Bank has decreased to some extent, as evidenced by the downgrade of the sovereign rating .

Long-term foreign currency IDR downgraded to 'BB+' from 'BBB-', outlook Negative

Long-term local currency IDR downgraded to 'BB+' from 'BBB-', outlook Negative

Short-term foreign currency IDR downgraded to 'B' from 'F3'

Support Rating Floor changed from 'BBB-' to 'BB+'

RSHB Capital S.A. Senior Unsecured Debt: Downgraded to 'BB+' from 'BBB-'/Affirmed at 'AA+(rus)'

RSHB Capital S.A. legacy subordinated debt: downgraded from 'BB+' to 'BB'.

at the current level

On August 13, 2014, Fitch Ratings affirmed the long-term issuer default ratings of Russian Agricultural Bank (hereinafter referred to as Rosselkhozbank) at 'BBB-'. The rating outlook is “Negative”.

The affirmation of the ratings reflects Fitch's assessment of the high potential support for Rosselkhozbank from the Russian authorities, should the need arise. The Negative Outlook on the bank's Long-term IDR reflects the outlook on the sovereign rating and the potential for deterioration in the government's ability to provide support, given the weakening economy and the risks associated with sanctions.

Rating action by Fitch

On March 24, 2014, Fitch Ratings revised the outlooks on the ratings of four Russian state-owned banks, including OJSC Rosselkhozbank (hereinafter referred to as Rosselkhozbank), 10 banks with foreign participation and Alfabank, the largest private bank, and the rating action also affected 9 large Russian companies. These rating actions follow the agency's revision of the Outlook on Russia's sovereign ratings from Stable to Negative on March 21, 2014.

The outlook revision on Rosselkhozbank's Long-term Issuer Default Ratings (IDRs) reflects the increased likelihood of the government's ability to provide support weakening. Rosselkhozbank's Long-term IDR ("BBB-"), Support Level and Senior Debt Rating, while reflecting the high likelihood of government support for the bank, are one notch below the sovereign rating due to only moderate capital support provided to the bank relative to degraded asset quality, and the absence at the moment of any announced plans for further capital injections in the future.

Long-term foreign and local currency IDR affirmed at 'BBB-'; forecast revised to negative from stable;

Short-term IDR affirmed at 'F3';

Rating action by Fitch

On August 14, 2013, Fitch Ratings downgraded the Long-term Issuer Default Ratings ("IDR") of the Russian Agricultural Bank ("Rosselkhozbank") from "BBB" to "BBB-" and its Viability Rating from "b" to " b-" and removed those ratings from Rating Watch Negative. The outlook on the bank's Long-term IDRs is Stable.

The downgrade of the bank's support-driven ratings, including the downgrade of its Long-term IDR and senior debt rating, reflects only modest capital support provided to the bank in terms of deteriorating asset quality and the absence of any announced plans to make further capital injections in the future. The downgrade also reflects the agency's current view that any change in Rosselkhozbank's status is unlikely to significantly improve the bank's supportive capacity. That said, Rosselkhozbank's ratings continue to reflect Fitch's view that the bank is highly likely to receive support from the Russian authorities if needed. This view is based on the bank's 100% state ownership (and its exclusion from the privatization program), its role in pursuing government policy, and the moderate size of Rosselkhozbank's balance sheet relative to the financial resources available to the state.

Long-term foreign and local currency IDR downgraded from 'BBB' to 'BBB-', outlook stable, removed from Rating Watch Negative;

Short-term IDR affirmed at 'F3', removed from Rating Watch Negative;

Rating action by Fitch

On November 16, 2012, Fitch Ratings placed the ratings of the Russian Agricultural Bank (hereinafter referred to as Rosselkhozbank) on Rating Watch Negative. The placement of Rosselkhozbank's ratings on Rating Watch Negative reflects the agency's concerns about the bank's current asset quality and capitalization. At the same time, Fitch's base case is based on the assumption that the Russian authorities will take steps to provide sufficient support to the Bank. Rosselkhozbank's Long-term IDRs of 'BBB' are currently aligned with Russia's sovereign ratings and reflect Fitch's view that the bank is likely to receive support from the Russian authorities if needed. This takes into account the fact that the bank is 100% state-owned, its policy role, the history of state support to date, and the modest size of Rosselkhozbank's balance sheet in relation to the state's available financial resources.

Reports of a capital provision of RUB40bn, for which the 2012 federal budget is to be amended, suggest that the Russian authorities intend to support the bank. Other potential support measures, including additional capital injections and the purchase of some of the bank's impaired loans by state-controlled entities, were also discussed at the state level. If the Russian authorities announce measures to recapitalize Rosselkhozbank that are clearly sufficient given the bank's asset quality problems, this will help maintain the ratings at their current levels.

Fitch withdraws individual ratings of global financial institutions, other ratings of Rosselkhozbank remain at the current level

On January 25, 2012, the international rating agency Fitch Ratings withdrew the individual ratings of global financial institutions. This decision was taken following the introduction by the agency on July 20, 2011 of the sustainability ratings. These ratings are the agency's assessment of the creditworthiness of financial institutions. As a result of the change in scoring methodology, the two rating scales have been kept in parallel to facilitate a streamlined transition from Individual to Viability Ratings.

Fitch emphasizes that the change does not represent a fundamental change in the agency's approach to bank ratings, and does not represent a change in Fitch's view of the creditworthiness of rated issuers.

On January 18, 2012, Fitch Ratings affirmed the long-term IDRs of four state-owned Russian banks at 'BBB' with a Stable Outlook. The ratings of Russian Agricultural Bank were affirmed at the current level.

These rating actions follow the agency's revision of the rating outlook on the Russian Federation from Positive to Stable and the affirmation of the country's Long-term foreign and local currency IDRs at 'BBB' on January 16, 2012.

Fitch launches financial institution VRs

On July 20, 2011, Fitch Ratings introduced a new Viability Rating for financial institutions worldwide. These ratings are the agency's assessment of the standalone creditworthiness of such entities. Rosselkhozbank has been assigned a 'b+' sustainability rating.

Fitch emphasizes that the change does not represent a fundamental change in the agency's approach to bank ratings, and does not represent a change in Fitch's view of the creditworthiness of rated issuers. The Long-term Issuer Default Rating (“IDR”) will remain the premier rating for financial institutions and will be driven by the respective Issuer's Viability and Support Ratings. The VRs reflect the same key risks as the individual ratings previously used, but will have more tiers and a more familiar rating scale.

Rosselkhozbank Ratings Affirmed by Fitch Ratings

The bank's IDRs continue to be supported by Fitch's view that support from the Russian authorities is highly likely. This view is based on the bank's 100% state ownership, its role in pursuing the government's agri lending policy, the close ties between the government and the bank due to strong board representation and statements of government support, and the history of providing the bank with new capital during the crisis.

Rosselkhozbank Ratings Affirmed by Fitch Ratings

Fitch Ratings also affirmed Short-term foreign currency IDR at 'F3', National Long-term rating at 'AAA(rus)', Outlook Stable, Support rating at '2', Individual rating at 'D'.

Rosselkhozbank OJSC ranks fourth in terms of assets and second in the development of the branch network among the banks of the Russian Federation. The Bank's share in agricultural lending reaches 60%.

The outlook on the rating of OJSC Russian Agricultural Bank has been upgraded

On January 22, 2010, Fitch Ratings upgraded the outlook on the Long-term Issuer Default Rating (IDR) of Rosselkhozbank from negative to stable, the rest of the Bank's ratings were affirmed at the current level. The increase in the outlook for the Bank's Long-term IDR reflects the high likelihood of state support if necessary - Rosselkhozbank is 100% state-owned and, as the government's agent for the development of the agro-industrial complex, largely plays the role of a government policy tool.

Overall, Fitch Ratings has revised its outlook on 13 Russian banks, three European banking subsidiaries of a Russian bank and two Russian leasing companies from negative to stable and affirmed their ratings.

Rosselkhozbank Ratings Affirmed by Fitch Ratings

Rosselkhozbank's Long-term Issuer Default Rating (IDR) reflects the potential for support from the Russian authorities (Russia's sovereign rating is 'BBB'/Negative) given that the Bank is wholly owned by the state and also in view of its role in the ongoing policy in the field of lending to agro-industrial companies and significant systemic significance for the banking sector. Rosselkhozbank takes an active part in the implementation of state policy in the agro-industrial sector, combining the functions of a commercial bank and a development bank.

Rosselkhozbank's Individual rating of 'D' is currently supported by high capitalization, which was increased during the crisis, and comfortable liquidity.
Rosselkhozbank is the fourth largest Russian bank in terms of assets, with a share of 3.2% of the assets of the banking system at the end of Q3. 2009 The Bank has a 60% share of the agro-industrial lending market and a leading presence in rural areas of Russia.

Rosselkhozbank ratings confirmed by Fitch Ratings at current level

On April 20, 2009, Fitch Ratings affirmed the long-term issuer default ratings of a number of Russian banks and downgraded the individual ratings of two major banks. The ratings of Russian Agricultural Bank were affirmed at the current level.

The Affirmation of the Bank's Long-term IDR reflects the high likelihood of state support being provided if needed - Rosselkhozbank is 100% state-owned and, as the Government's agent for the development of the agro-industrial complex, largely plays the role of a government policy instrument.

According to Fitch Ratings, Rosselkhozbank's Individual 'D' rating is supported by a strong capitalization following a RUB 31.5bn contribution to the authorized capital by the state. and 45 billion rubles. in August 2008 and February 2009, respectively, as well as high liquidity.

Fitch Ratings downgrades Rosselkhozbank following the downgrade of the Russian Federation

On February 4, 2009, Rosselkhozbank's Long-term foreign currency IDR was downgraded by Fitch Ratings from BBB+ to BBB (outlook negative). The bank's Short-term foreign currency IDR has been downgraded to F3 from F2 and the National Scale rating affirmed at AAA(rus), stable, Support rating affirmed at 2 and Individual rating affirmed at D.

The change in the ratings is explained by the agency's downgrade of the rating of the Russian Federation from BBB+ to BBB. Fitch also downgraded the Short-term foreign currency IDR from F2 to F3 and the country ceiling for the Russian Federation from A- to BBB+.

Fitch Ratings Affirms Rosselkhozbank's Issuer Default Rating at 'BBB+'; Outlook Changed from 'Stable' to 'Negative'

On November 10, 2008, Fitch Ratings downgraded the ratings of 12 Russian banks and a number of financial companies from "stable" to "negative". The Issuer Default Rating of JSC Russian Agricultural Bank has been affirmed at 'BBB+', outlook changed from 'stable' to 'negative'. These rating actions followed the downgrade of the outlook on the rating of the Russian Federation from “stable” to “negative”.

Fitch Upgrades Rosselkhozbank's Individual Rating to 'D'

On September 5, 2006, the international rating agency Fitch Ratings upgraded the Individual Viability Rating of the Russian Agricultural Bank (Rosselkhozbank) from 'D/E' to 'D'. The bank's other ratings have been affirmed: Issuer Default Rating at 'BBB+'/Outlook Stable, Short-term 'F2', Support Rating '2'. The Long-term national scale rating was affirmed at 'AAA(rus)' with a stable outlook. and credit risks. At the same time, the Individual rating takes into account the high credit and operational risks caused by rapid growth and the bank's relatively untested loan portfolio. The rating also takes into account the significant concentration of lending in the rather high-risk agricultural sector (although this factor is mitigated by fairly good diversification by borrowers, regions and sub-sectors), as well as low profitability and internal capital generation. Factors such as maintaining asset quality and continued diversification of the funding structure will further boost the Bank's Individual rating, while deterioration in asset quality and capitalization could lead to a downgrade. the likelihood of the bank receiving state support if necessary. This is because the bank is state-owned and plays a key role in the state's policy to develop the agricultural sector, as well as the ability of the Russian authorities to provide support, as evidenced by the sovereign foreign currency issuer default rating of 'BBB+'. The change in the sovereign rating is likely to lead to further changes in the issuer default rating of Rosselkhozbank.

Fitch Upgrades Russian Agricultural Bank to 'BBB+' and 'F2'

On July 27, 2006, the international rating agency Fitch Ratings upgraded the stability rating of the Russian Agricultural Bank (Rosselkhozbank) from BBB to BBB+ (BBB plus), with a Stable outlook. The short-term rating was also upgraded from “F3” to “F2”. The ratings were upgraded due to the important role of Rosselkhozbank OJSC in the implementation of state policy and strategy in the field of the agro-industrial complex, as well as high financial performance. Accordingly, the ratings of international debt obligations issued by Rosselkhozbank OJSC were upgraded to the level of "BBB +" (BBB plus). These changes are based on an increase by Fitch Ratings on 25 July 2006 of Russia's Country Ceiling. At the same time, Fitch Ratings affirmed Russian Agricultural Bank's national scale rating at 'AAA(rus)' (stable) and Support rating at '2' .

Fitch Upgrades Russian Agricultural Bank to 'BBB' and 'AAA(rus)'

Fitch Ratings-London/Moscow-April 28, 2006: Fitch Ratings today upgraded Russian Agricultural Bank ("RSHB") Long-term to 'BBB' from 'BBB-' (BBB minus) and National Long-term from "AA+(rus)" to "AAA(rus)". The forecast for the long-term and national long-term rating is “Stable”. The bank's ratings are also affirmed: short-term - "F3" and support rating - "2". Fitch intends to review the Individual 'D/E' rating later in the year.

The rating upgrade reflects the increased strategic importance of the RSHB for the Russian authorities in recent months, as well as the strengthening of its role in the implementation of state policy in the field of agriculture. This is explained by the fact that in January 2006 the implementation of the National Project “Development of the Agro-Industrial Complex” was launched, one of the four priority national projects announced in September 2005 by the President of the Russian Federation Vladimir Putin and under his personal control. In this regard, Fitch believes that the Russian authorities are more inclined to provide support to the bank if necessary. The project provides for the provision of state support (both financial and non-financial) to the agricultural sector, with special attention to working with small businesses and improving the welfare of rural residents. RSHB acts as an agent of the government in the implementation of this project. In addition, the bank will receive additional contributions to the authorized capital (in 2006 such contributions will amount to 3.7 billion rubles) to ensure the performance of the functions of a specialized agricultural bank.

The Long-term, Short-term, Support, and National Long-term ratings of RSHB reflect Fitch's view that the bank is highly likely to receive support from the Russian authorities due to the fact that RSHB is wholly owned by the state, has the status of an agent of the government and plays an important role in the implementation of government programs. The ratings also take into account the ability of the Russian authorities to provide support, as evidenced by Russia's sovereign long-term foreign currency rating of 'BBB'.

Fitch Assigns Russian Agricultural Bank a 'BBB-' Rating

Fitch Ratings-London/Moscow-September 2, 2005. Today, Fitch Ratings, an international rating agency, assigned ratings to the Russian Agricultural Bank (known as Rosselkhozbank) as Long-term 'BBB-' (BBB minus), Short-term 'F3', Support Rating ' 2", Individual Rating - "D/E" and National Long-term Rating - "AA+(rus)". The outlook for the long-term and national long-term ratings is Stable.

Rosselkhozbank's Long-term and Short-term ratings, as well as the Support and National Long-term ratings, reflect Fitch's view that the bank is highly likely to receive support from the Russian authorities if needed. This opinion is based on the state ownership of the bank's shares, its status as an agent of the government and its important political role. This position also takes into account the ability of the Russian authorities to provide support, as reflected in Russia's sovereign long-term foreign currency rating of 'BBB'.

The Individual rating reflects the bank's very significant exposure to high risks associated with the agricultural sector, as well as risks due to the bank's rapid growth in its loan portfolio, very weak profitability (mainly due to network expansion costs) and some operating environment risks. At the same time, the rating takes into account the currently acceptable asset quality and the very low (for Russia) level of borrower concentration.

The upgrade of Rosselkhozbank's long-term rating could follow the upgrade of Russia's sovereign rating, reflecting the government's strengthening ability to provide support. A downgrade could result from a sovereign downgrade (indicating reduced ability to help), a significant reduction in the bank's state-owned stake, or a reduction in the political role of Rosselkhozbank. (The latter factors would potentially indicate a decline in the state's willingness to provide support to the bank).

Upgrading the Individual rating could result in the bank's continued good asset quality over a significant period of time, as well as a significant and sustained improvement in the bank's profitability. A noticeable deterioration in asset quality and a strong decline in the bank's capital adequacy ratios could lead to a downgrade.

Rosselkhozbank was founded in 2000 and is 100% owned by the Federal Agency for Federal Property Management. The Bank performs the function of implementing state policy in the agricultural sector, provides loans, conducts settlement transactions and provides other types of financial services to enterprises of the Russian agro-industrial complex and related industries. In addition, Rosselkhozbank provides banking services to individuals living in rural areas. At the end of the first half of 2005 Rosselkhozbank was one of the forty largest banks in Russia and was the second largest bank in lending to the agricultural sector after Sberbank.

In this rating of Russian banks (issuers), according to the Fitch agency, there are long-term foreign currency issuer default ratings ("IDRs")(Long Term Issuer Default Rating).
Issuer credit rating scales:

• AAA: The highest level of creditworthiness. 'AAA' ratings denote the lowest default risk expectations. Ratings of this level are assigned only in case of exceptionally high ability to repay financial obligations.
• AA: Very high creditworthiness. 'AA' ratings denote very low default risk expectations. They indicate a very high ability to repay financial obligations.
• A: High creditworthiness. 'A' ratings denote low default risk expectations. The ability to repay financial obligations is assessed as high.
• BBB A: Good creditworthiness. 'BBB' ratings denote current low default risk expectations. The ability to meet financial obligations is assessed as adequate, however the impact of a negative business environment or negative economic conditions is more likely to reduce this ability.
• BB: Speculative rating. 'BB' ratings denote increased vulnerability to default risk, particularly in the event of adverse changes in the business environment or economic conditions over time. However, business flexibility or financial flexibility supports the ability to service financial obligations.
• B: Highly speculative rating. 'B' ratings indicate that there are significant risks of default, but there is limited margin of safety. At the moment, financial obligations are met, however, the ability to continue payments is vulnerable in the event of a deterioration in the business environment or economic conditions.
• CCC: Substantial credit risk. Default appears to be a real possibility.
• CC: Very high levels of credit risk. Default in one form or another seems likely.
• C: Exceptionally high levels of credit risk. Default is imminent or imminent, or the issuer has suspended operations.
• RD: Limited default. An 'RD' rating indicates that the issuer, in Fitch's opinion, has defaulted and failed to recover from payments on bonds, a loan or other material financial obligations, but has not entered bankruptcy proceedings, appointed an interim manager, and has not commenced receivership proceedings; liquidation or other formal winding up procedures, and such issuer has not gone out of business in any other way.
• D: Default. A 'D' rating denotes an issuer that, in Fitch's opinion, is in bankruptcy proceedings, an interim receiver has been appointed and receivership proceedings, liquidation or other formal winding-up proceedings have commenced, or which has otherwise ceased operations.

Here I read and read, and I do not understand anything. What did they write here?

The international rating agency Fitch Ratings has confirmed Ukraine's long-term issuer default rating (IDR) in foreign and national currencies at CCC. This is stated in a message on the agency's website, Capital reports.
Ukraine's unsecured bond rating has also been affirmed at CCC.

Fitch Applies Methodology Change to Ukraine's Ratings
Fitch Ratings-Moscow-25 July 2016: (translated from English)
Fitch Ratings - London - 22 July 2016 - Fitch Ratings has affirmed Ukraine's National Currency Long-term Issuer Default Rating (IDR) at 'CCC'. The country's long-term senior unsecured domestic currency rating has also been affirmed at 'CCC'. Short-term foreign currency IDR affirmed at 'C', with Short-term local currency IDR assigned at 'C'.

In accordance with EU regulation on rating agencies, the publication of a rating review in the sovereign sector is subject to restrictions and must occur according to the published schedule, unless the rating agency needs to deviate from this procedure in order to comply with its legal obligations. Fitch interprets this provision to allow us to issue a rating review when there is a change in our rating methodology that, in our opinion, makes it impractical to wait for the next scheduled review date to make changes to the rating, outlook or Rating Watch status. The next date for the agency's scheduled review of Ukraine's ratings was 11 November 2016. However, Fitch believes that in this case, recent changes in our methodology warrant a portfolio review.

The rating committee that assigned the ratings included in this commentary was a portfolio review following recent changes to our methodology and focused on three areas: short-term local currency IDRs, revisions to existing short-term foreign currency IDRs, and a notching review. between existing long-term national currency IDRs and long-term foreign currency IDRs. The Committee approved the departure from the methodology due to the fact that the revision applied all relevant sections of our methodology for the above types of ratings, but did not apply the sections on Long-term foreign currency IDRs, as they were outside the scope of this revision.

The Affirmation of Ukraine's Long-term local currency IDR of 'CCC' reflects the following key rating driver:

In accordance with the updated guidance from Fitch's revised sovereign methodology dated 18 July 2016, Ukraine's credit profile does not support a notching up for the Long-term local currency IDR relative to the Long-term foreign currency IDR. This reflects Fitch's view that neither of the two key drivers of notching up for the Long-term local currency IDR identified in the methodology is present in Ukraine. These are the following two key factors: (i) strong public finance fundamentals relative to external finance fundamentals; and (ii) the previous prioritization of domestic currency creditors over foreign currency creditors.

The affirmation of Ukraine's Short-term foreign currency IDR at 'C' reflects the following key rating driver:

In accordance with the updated guidance contained in the methodology of the Sovereign Issuer Ratings Agency dated July 18, 2016, Ukraine's Short-term foreign currency IDR is derived by comparing it to its Long-term foreign currency IDR of 'CCC'.

Ukraine's assignment of a Short-term local currency IDR of 'C' reflects the following key rating driver and its weight:

HIGH WEIGHT

The assignment of a Short-term local currency IDR is in line with Fitch's approach to assigning short-term ratings based on a table of long-term and short-term ratings mapping, which allows determining a short-term local currency IDR based on a long-term local currency rating. According to Fitch's rating definitions, the table of conformity is only a guideline and deviations from it are possible. At the same time, in relation to sovereign ratings, such cases are rare.

Ukraine's Short-term local currency IDR is derived by comparing it with its Long-term local currency IDR 'CCC'.

Key factors that could lead to a change in the Long-term local currency IDR include:
- Change in Long-term foreign currency IDR
- Changes in the key or notching-up factors for the Long-term local currency IDR relative to the Long-term foreign currency IDR.

Key factors that could cause a change in the Short-term foreign currency IDR or Short-term local currency IDR include:
- Change in Long-term foreign currency IDR (for short-term foreign currency IDR)
- Change in Long-term National Currency IDR (for Short-term National Currency IDR).

Factors that could affect the ratings going forward are outlined in the previous rating action comment dated May 13, 2016 and are unchanged for the Long-term foreign currency IDR. Consistent with the methodology deviation noted above, the review of the Long-term foreign currency IDR and related factors that may affect the ratings going forward was not part of this review.

ASSUMPTIONS

The assumptions are set out in the previous rating action comment dated May 13, 2016 and are unchanged for the Long-term foreign currency IDR. Consistent with the methodology deviation mentioned above, the revision of the Long-term foreign currency IDR and associated assumptions was not part of this revision.

Contacts:

First Analyst
Richard Grieveson
Director
+44 20 3530 1811
Fitch Ratings Limited
30, North Colonnade
London E14 5GN

Second Analyst
Charles Seville
Senior Director
+1 212 908 0277

Chairman of the Committee
Tony Stringer
Managing director
+44 20 3530 1219

Press contacts in Moscow: Julia Belskaya von Tell, Moscow, tel.: + 7 495 956 9908/9901, [email protected]

What do all these strange words mean? Do they confirm to us what the habitues of the urba from the Ukrainian side say - that the economy is growing, and the country is flying at full speed towards prosperity?
Or are these ratings all bullshit, and the main thing is the spirit of the Ukrainian people, who will overcome everything and pay off all debts?

The outlook on the ratings of Evrofinance Mosnarbank, National Reserve Bank and RosEvroBank is Stable, reflecting the significant ability of these banks to absorb losses, while Bank Saint Petersburg and Moscow Credit Bank have a Negative outlook on the ratings, taking into account their more moderate stock of capital. The full list of rating actions is at the end of this post.

Asset quality of Eurofinance Mosnarbank at the end of Q3 2009 remained manageable, with NPLs (loans overdue by 90 days or more) at 2.8% of the portfolio and restructured loans at 4.3%. After a significant reduction in leverage on the balance sheet in Q2-Q3. 2009, the regulatory capital ratio further increased to a strong 34% at the end of Q3. 2009, while liquidity positions are comfortable, with highly liquid assets equaling more than 60% of client funding. At the same time, Evrofinance Mosnarbank's ratings continue to be constrained by its limited client base and concentrated balance sheet, and significant moments of uncertainty remain about the bank's future strategy, ownership structure and potential political role.

Impairment of loans at the National Reserve Bank increased significantly, with NPLs increasing to 16.8% at the end of Q3. 2009, while restructured loans accounted for another 6% of the portfolio. In addition, market risks have increased again following the acquisition of an approximately 20% stake in Aeroflot from the National Reserve Corporation, of which the bank is a part. At the end of Q3 In 2009, securities accounted for about 40% of all assets, while Aeroflot and Gazprom shares accounted for 50% and 33% of the portfolio, respectively. At the same time, the capital base of the National Reserve Bank (at the end of Q3 2009, the regulatory capital ratio was 43%) remains sufficient to absorb significant losses in both the loan and securities portfolio, and liquidity is supported by the availability of funding from the Central Bank of the Russian Federation (“CBR”), either on an unsecured basis or through refinancing under Aeroflot/Gazprom shareholdings.

At the end of Q3 In 2009, loans overdue by more than 30 days at RosEvroBank accounted for 7.4% of the portfolio, while restructured loans accounted for 6% of all loans, mainly due to one large loan. Borrower concentration at RosEvroBank is declining but still high, with the top 20 loans equaling 115% of equity at end-Q3. 2009 according to IFRS financial statements. Basel I's regulatory capital ratio and total capital adequacy ratio were strong at 22.4% and 31.9% respectively at end-Q3. 2009 following a significant reduction in the loan portfolio in 2-3 quarter. 2009 and obtaining subordinated loans for a total of 1.9 billion rubles. from shareholders and Vnesheconombank (BBB/Negative), while provisioning coverage for 30-day past due loans was good at 166%. Highly liquid assets accounted for a significant part of the balance sheet at 26% at the end of Q3. 2009, while unused CBR lending is significant and forthcoming repayments of funding raised in financial markets are at a moderate level.

Bank St. Petersburg's reported impairment rates remain low, with NPLs at 2% at end-1H09 and restructured loans at 6.6%. At the same time, the high proportion of construction/real estate lending and rapid growth in the period leading up to the economic crisis, in Fitch's view, makes the risk of a future increase in loan impairment slightly higher than for most other Russian banks. The bank's loss absorption capacity is also modest by current market standards, with end-Q3 regulatory capital. 2009 at 13.7%, Tier 2 capital representing a significant share (41%) of total capital, and reserves to loans ratio capable of increasing from 7.4% to 12% without violating regulatory capital requirements.

At the same time, Bank Saint Petersburg's liquidity position is currently sound (as of end-Q309, highly liquid assets covered several times USD125m Eurobonds maturing at end-November 2009), and The bank's significant regional client base in St. Petersburg, a broad deposit base and high cost efficiency are also positive factors for the bank's creditworthiness. If Bank Saint Petersburg successfully completes its planned $200m convertible preferred share issue in December 2009 and maintains acceptable asset quality over the coming quarters, the outlook could be revised back to Stable.

Reported levels of NPLs and restructured loans at Credit Bank of Moscow were significantly lower than those of many peers, at 3.4% and 4.6%, respectively, at end-Q3. 2009 During 2009, the bank's capitalization was supported by a capital contribution of RUB 3 billion. and improved profitability before impairment charges, with a regulatory capital adequacy ratio of 13.8% at end-Q3. 2009 At the same time, Fitch sees Credit Bank of Moscow's loss absorption capacity as moderate, with the bank's ability to increase its reserves to loans ratio to 12% from its actual 6.1% at end-Q3. 2009 without violating minimum capital requirements. In addition, while the liquidity position is currently stable, the bank will face some refinancing risk as 2010 will see the maturation of a significant amount of funding raised in the financial markets, which is equal to a significant share of 14% of assets. However, if Kredit Bank of Moscow manages to maintain moderate loan impairment and a healthy liquidity position as it pays/refinances funding raised from financial markets in 2010, the bank's outlook could be revised down to Stable.

The valuation of the banks covered in this commentary is part of a broader valuation of banks rated by Fitch in Russia. In the near future, Fitch will publish analytical studies on each of the financial institutions covered in this report on the agency's website www.fitchratings.com.

Bank "Saint-Petersburg:

Senior Unsecured Debt: Affirmed at 'B', Recovery Rating at 'RR4'
Subordinated Debt Program: Rating Affirmed at 'CCC'



The Long-term IDR Support Floor has been affirmed at 'B-'.

Moscow credit bank:

Long-term foreign currency IDR affirmed at 'B', outlook Negative
Short-term foreign currency IDR affirmed at 'B'
Individual rating affirmed at 'D'
Support rating affirmed at '5'

National long-term rating affirmed at 'BBB-(rus)', outlook 'Negative'.

Eurofinance Mosnarbank:

Short-term foreign currency IDR affirmed at 'B'
Individual rating affirmed at 'D'
Support rating affirmed at '5'
Long-term IDR Support Level affirmed at 'No Support Level'
National long-term rating affirmed at 'BBB(rus)', outlook Stable.

National Reserve Bank:

Long-term foreign currency IDR affirmed at 'B', outlook Stable
Short-term foreign currency IDR affirmed at 'B'
Individual rating affirmed at 'D'
Support rating affirmed at '5'
Long-term IDR Support Level affirmed at 'No Support Level'

RosEvroBank:

Long-term foreign currency IDR affirmed at 'B', outlook Stable
Short-term foreign currency IDR affirmed at 'B'
Individual rating affirmed at 'D'
Support rating affirmed at '5'
Long-term IDR Support Level affirmed at 'No Support Level'
The national long-term rating has been affirmed at 'BBB-(rus)' with a 'Stable' outlook.

Under Fitch's rating methodology, banks' risks as stand-alone entities are reflected in individual ratings, while prospects for external support are reflected in Fitch's Support Ratings. Together, these ratings drive the Long-term and Short-term IDRs.

The bank's Long-term foreign currency and local currency IDRs have been upgraded from 'B' to 'B+', and the bank's National Long-term rating has been upgraded from 'BBB-(rus)' to 'A-(rus)'. Forecasts for all three ratings are Stable. Fitch Ratings also affirmed the Bank's Short-term foreign currency IDR at 'B' and its Support Rating at '4'.

According to the rating agency, the Bank's IDR of BCC-Moscow is on par with the IDR of the parent bank Bank CenterCredit JSC, "since this subsidiary is highly integrated with the parent bank and highly dependent on it regarding funding." Bank BCC-Moscow is a small bank and plans to develop gradually, which should limit the potential amount of financial support from the shareholders of the parent bank, should it be required.

The assignment of ratings to the bank at the level of the parent Bank CenterCredit JSC, the fourth in terms of assets in the Republic of Kazakhstan, became possible thanks to the balanced financial and credit policy of the Bank "BCC-Moscow" and high-quality corporate governance, which allows the bank to level risks and manage liquidity in accordance with mandatory requirements Bank of Russia. All this contributes to the stable growth and development of the bank. The current rating upgrade reflects the success of the bank's chosen development model, as well as the growing confidence in it from international institutions, which, in turn, will facilitate the process of attracting financial resources.

“Against the backdrop of good market conditions in Russia, an increase in the rating is an important competitive advantage for medium-sized banks, which, first of all, is manifested in the market's confidence in a financial institution,” says Lyubov Karlash, Chairman of the Board of Bank BCC-Moscow LLC. - This allows us, without the participation of the parent bank, to attract more significant financial resources on fairly favorable terms and, accordingly, offer our customers more flexible rates. Moreover, the rating upgrade will provide an opportunity to interact more actively with international financial organizations in the direction of joint projects aimed at supporting SMEs and trade finance. We expect that the rating upgrade will become an additional impetus for the development of BCC-Moscow Bank and will help expand its financial capabilities and attract new customers.”