Fitch Upgrades Russia's MDM Bank and MDM Bank Holding GmbH to 'BB-'

20.10.2005 00:00

Moscow, 20 October 2005 - Fitch upgraded the Long-term rating of Russia's MDM Bank and Austria's MDM Holding GmbH to 'BB-' (BB minus) from 'B+'. MDM Bank's National Long-term rating was upgraded to 'A+(rus)' from 'A(rus)'. Following the upgrade, the Outlook for the Long-term ratings of MDM Bank and MDM Holding GmbH and the National Long-term rating of MDM Bank are confirmed as Stable. Other Fitch ratings of MDM Bank and MDM Holding GmbH have been affirmed at Short-term 'B' and Individual 'C/D'. The Support rating of MDM Bank and MDM Holding GmbH have been affirmed at '4' and '5', respectively.

Fitch Ratings also stressed that "the rating action reflects significant improvements in the bank's corporate governance structure, its risk management procedures and the decrease in concentration levels and related-party transactions. The Long-term, National Long-term, Short-term, and Individual ratings also reflect the bank's cautious risk appetite, sufficient liquidity, sustainable core profitability, adequate asset quality and reasonable capitalisation."

The agency stated that future MDM Bank and MDM Holding GmbH ratings could increase as a result of improvement in profitability, an ongoing reduction in operations with related parties, further strengthening of risk management and corporate governance procedures and further diversification of the bank's business mix and franchise.

Fitch Ratings' press-release can be found on http://www.fitchratings.com/corporate/

19.01.2007 14:40

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