Fitch Ratings improved the Outlook on LOCKO-Bank to Stable and affirmed the rating at 'B+'

International rating agency Fitch Ratings on October 21, 2016 has affirmed the Foreign and Local Currency IDRs of LOCKO-Bank at 'B+', the Outlook has been revised to Stable from Negative. The Outlook revision to "Stable" means that on the horizon 12 - 18 months with a reasonable degree of confidence rating will be maintained at the current high level.

The "Stable" Outlook on LOCKO-Bank reflects Fitch's view that preimpairment profitability is sufficient to cover the potential impairment of loans and underpins adequate loss absorption capacity.

Fitch Rating’s commentaries mark change of key performance indicators on which the rating and the outlook are based. So, among other things, Fitch draws attention to the low level of NPLs in the gross loans (NPL 90+ at 7%), adequate NPLs coverage by reserves (80%), moderate single borrower concentration and sound core capital ratio (18.3% at end1H16)

The rating at 'B+' reflects adequate for this time level of capitalization, stable funding base, limited refinancing risk and reasonable liquidity position.

LOCKO-Bank:

Long-Term Foreign and Local Currency IDRs: affirmed at 'B+', Outlooks revised to Stable from Negative

Short-Term Foreign Currency 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 revised to Stable from Negative

Senior unsecured debt: affirmed at 'B+'/Recovery Rating 'RR4' and 'B+(EXP)'/Recovery Rating 'RR4(EXP)'

Senior unsecured debt National long-term rating: affirmed at 'A-(rus)'and 'A-(rus)(EXP)'