Fitch Assigns Bank Spurt's IDR at 'B-'
OREANDA-NEWS. Fitch Ratings has today assigned Russia's Bank Spurt ratings at Issuer Default 'B-' (BB minus), Short-term 'B', Individual 'D/E', Support '5'. The Outlook for the Issuer Default rating is Stable.
The ratings reflect the bank's small size, risks associated with the concentrated balance sheet and modest bottom-line results. However, they also take into account its currently low level of impaired loans and adequate capitalization.
The bank is pursuing a strategy of diversifying its now predominantly corporate franchise into SME and retail businesses. Credit facilities from EBRD and KfW should support this strategy.
"EBRD's acquisition of a 28% stake should positively affect corporate governance practices.