OREANDA-NEWS. Fitch Ratings has today placed Russia-based Absolut Bank's ("Absolut") Issuer Default 'B', Short-term 'B', Support '5' and National Long-term 'BBB(rus)' ratings on Rating watch Positive. Its Individual Rating is affirmed at 'D'.

At the same time, KBC Bank's ("KBC") ratings of Issuer Default 'AA-' (AA minus) with Stable Outlook, Short-term 'F1+', Individual 'B' and Support '2' are affirmed, as is its Support floor of 'BBB+'.

The rating action follows the announcement today by KBC that it has agreed to acquire a 92.5% stake in Absolut Bank, the 25th-largest Russian bank by assets at end-2006, for EUR761m (the cost for full ownership).