Fitch upgrades MDM Bank to 'BB'
20.09.2007 20:25
Moscow, September 20, 2007 – Fitch Ratings has today upgraded MDM Bank's Long-term Issuer Default rating (IDR) to ‘BB’ from ‘BB-’ (BB minus) and its National Long-term rating to ‘AA-(rus)’ (AA minus (rus)) from ‘A+(rus)’. Fitch has also affirmed MDM’s other ratings at Short-term IDR ‘B’, Individual ‘C/D’, Support ‘4’ and Support Rating Floor ‘B’. The Outlooks for both Long-term ratings are Stable.
According to Fitch Ratings, “The upgrade reflects lengthened tenor and improved diversification of MDM’s foreign funding, which, together with prudent liquidity management during this period of problems in the international capital markets, is allowing the bank to relatively comfortably meet its refinancing needs. The rating action also takes into account the bank’s increased franchise and size, as well as strengthened corporate governance.”
The agency stated that MDM’s ratings are also based on its adequate capitalisation, sound management and risk management capabilities, satisfactory asset quality and sound performance.
Andrey Ilyin, MDM Bank’s CFO, said, «MDM welcomes this upgrade by Fitch Ratings. We will continue to work towards further diversification of our business on both sides of the balance sheet in line with our strategy”.
MDM Bank
MDM Bank was founded in December 1993 and holds a General Banking License issued by the Central Bank of Russia (#2361 dated 13 February 2003). MDM Bank is one of the most dynamically developing banks in Russia and is among the top Russian banks according to net worth and asset ownership. Today, MDM Bank is a modern universal financial institution offering a full range of services to its clients.
MDM has one of the highest credit ratings among privately-owned Russian banks – Standard & Poor’s (BB, stable), Fitch Ratings (BB-, positive) and Moody’s (Ba1, stable) – and is the only Russian financial organization that has been given a public corporate governance rating by Standard & Poor’s (6+).
In October 2006, Standard and Poor’s awarded MDM Bank first place in its study of ‘Transparency and Disclosure by Russian banks’. The Bank was also regarded by Euromoney magazine as “one of the leading banks in Russia and Emerging Europe, applying the most advanced standards of corporate governance.”MDM Bank has received a number of awards from Global Finance magazine:
2005 – ‘Best Domestic Bank’ and ‘Editor’s Special Award for Transparency’.
2006 – ‘Best Forex Bank’, ‘Best Domestic Bank’, ‘Best Domestic M&A Arranger’, and ‘Best Bank in
Corporate Governance’. In October 2006, Euromoney magazine awarded MDM Bank ‘Leading Bank in Corporate Governance in Emerging Europe’.
2007 – ‘Corporate Governance Editor’s Award’, and ‘Best Forex Bank’.Inquiries:
Investor Relations: +7 495 221 30 75
Public Relations: +7 495 363 27 41
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