January 11, 2010 |
|Fitch Ratings-London/Moscow-30 December 2009: Fitch Ratings has today affirmed and simultaneously withdrawn Russia based Bank Saint Petersburg’s (BSP) ratings, including its Long-term IDR of ‘B’ with a Negative Outlook. Fitch will no longer provide ratings or analytical coverage of BSP. |
Despite BSP’s placement of an approximately USD200m convertible preference share issue on 23 December (which management estimates increased its Basel 1 tier 1 capital ratio to 12% from 8.7% at end-Q309), loss absorption capacity remains moderate, in Fitch’s view, relative to the risk of further asset quality deterioration. BSP has a high proportion of construction/real estate lending and rapidly expanded its loan book shortly prior to the economic crisis. During Q309, non-performing loans (loans overdue by more than 90 days and classified as uncollectable) increased to 6.2% from 2.2% of the loan book while restructured loans rose to 7.9% from 6.6%. Although loans overdue more than one day declined from 7.5% to 6.6% of the loan book during the same period of time, Fitch believes this ratio can be volatile given BSP’s high borrower concentration.
However, BSP's liquidity position is currently satisfactory and the bank's solid regional franchise in Saint-Petersburg, broad deposit base and high cost efficiency are also positive for the bank's credit profile.
Rating actions are as follows:
Long-term foreign currency Issuer Default Rating (IDR): affirmed at 'B'; Outlook Negative; withdrawn
Short-term foreign currency IDR: affirmed at 'B' and withdrawn
Individual Rating: affirmed at 'D' and withdrawn
Support Rating: affirmed at '5' and withdrawn
Support Rating Floor: affirmed at 'B-' and withdrawn
Senior unsecured debt programme: affirmed at 'B' and withdrawn
Subordinated debt programme: affirmed at 'CCC' and withdrawn
Società: Bank Saint Petersburg
|Nome completo della società||“Bank “Saint-Petersburg” PJSC|
|Paese di registrazione||Russia|