OREANDA-NEWS. September 21, 2007. Fitch Ratings has today upgraded MDM Bank's  Long-term Issuer Default rating (IDR) to ‘BB’ from ‘BB-’ (BB minus) and its National Long-term rating to ‘AA-(rus)’ (AA minus (rus)) from ‘A+(rus)’. Fitch has also affirmed MDM’s other ratings at Short-term IDR ‘B’, Individual ‘C/D’, Support ‘4’ and Support Rating Floor ‘B’. The Outlooks for both Long-term ratings are Stable.

According to Fitch Ratings, “The upgrade reflects lengthened tenor and improved diversification of MDM’s foreign funding, which, together with prudent liquidity management during this period of problems in the international capital markets, is allowing the bank to relatively comfortably meet its refinancing needs. The rating action also takes into account the bank’s increased franchise and size, as well as strengthened corporate governance.”

The agency stated that MDM’s ratings are also based on its adequate capitalisation, sound management and risk management capabilities, satisfactory asset quality and sound performance.

Andrey Ilyin, MDM Bank’s CFO, said, "MDM welcomes this upgrade by Fitch Ratings. We will continue to work towards further diversification of our business on both sides of the balance sheet in line with our strategy”.