OREANDA-NEWS. Fitch Ratings has upgraded the Individual rating of Sberbank - Savings Bank of the Russian Federation to "C" from "C/D". The bank's other ratings are affirmed at Issuer Default "BBB+" with Stable Outlook, Short-term "F2" and Support "2".

The upgrade of Sberbank's Individual rating reflects the considerable strengthening of the bank's performance during the last two years as well as an improving, albeit still challenging, Russian operating environment.

The Individual rating is also supported by the depth of the bank's franchise, its strong and stable funding base, low levels of loan impairment to date and limited market risk exposure.

However, it also reflects high, albeit seemingly gradually decreasing, loan concentration levels, significant volumes of uncollateralized retail lending (secured only by personal guarantees) and risks resulting from rapid credit growth.

Sberbank's Issuer Default, Short-term and Support ratings reflect its importance to the Russian banking sector, owing to its unmatched size and domestic franchise, as well as its majority state ownership, and is driven by the potential for support from the Russian state.