Fitch affirmed LOCKO-Bank’s ratings (2014)

23 May 2014, Fitch Ratings has affirmed the Long-term Issuer Default Rating of LOCKO-Bank at 'B+' with Stable Outlook.

The affirmation of LOCKO's IDRs and VR reflects reasonable capitalisaiton level. The FCC ratio was 17.2% at end-2013. Total regulatory capital ratio was 12.5% at end-1Q14. Fitch estimates the bank has the capacity to increase regulatory loan impairment reserves to 10.5% from 6.4% currently, overall a reasonable loss absorption buffer. LOCKO-Bank demonstrates adequate profitability for a universal commercial bank and good asset quality.

LOCKO-Bank’s ratings by Fitch are as follows:

• Long-term foreign and local currency IDRs: affirmed at 'B+', Outlook Stable
• Short-term IDR: affirmed at 'B'
• Viability Rating: affirmed at 'b+'
• Support Rating: affirmed at '5'
• Support Rating Floor: affirmed at 'No Floor'
• National Long-term rating: affirmed at 'A-(rus)', Outlook Stable
• Senior unsecured debt: affirmed at 'B+'; Recovery Rating 'RR4'
• Senior unsecured debt National Long-term rating affirmed at 'A-(rus)'
• Subordinated debt: affirmed at 'B(exp)', Recovery Rating 'RR5' and withdrawn
• Senior unsecured debt: affirmed at 'B+(exp)'; Recovery Rating 'RR4'
• Senior unsecured debt National Long-term Rating: affirmed at 'A-(exp)(rus)'