"Fitch Upgrades SDM-Bank to 'B' with Stable Outlook"
June 24, 2010
Fitch Ratings upgraded SDM-Bank's ratings on June 24, 2010 to 'B' and assigned Stable Outlook. According to Fitch, the ratings upgrade reflects: "...solid (SDM) capital positions and ... ...generally cautious approach to balance sheet management and risk taking."Fitch has highlighted a number of performance metrics that contributed to the upgrade:
3.6% of gross loans at end-Q110 and restructured loans of 2% at end-May 2010.
ADEQUATE IMPAIRMENT RESERVES
7.7% of gross loans at end-Q110.
ROBUST CAPITAL RATIOS
The Basel tier 1 and total capital ratios stood at 14.4% and 17.7% atend-Q110.
COMFORTABLE LIQUIDITY POSITION
Liquidity is underpinned by a significant cash cushion (10% of assets at end-Q110), and short-term interbank placements (7%).
Fitch ratings are presented below:
Long-term foreign currency IDR: upgraded to 'B' from 'B-'; removed from Rating Watch Positive; assigned Stable Outlook
Long-term local currency IDR: assigned at 'B', Outlook Stable
Short-term IDR: affirmed at 'B'
Individual Rating: upgraded to 'D' from 'D/E'
Support Rating: affirmed at '5'
Support Rating Floor: affirmed at 'No Floor'
National Long-term rating: upgraded to 'BBB(rus)' from 'BB-(rus)'; removed from Rating Watch Positive; assigned Stable Outlook