OREANDA-NEWS. December 25, 2009. The international Fitch Ratings company has reaffirmed the ratings of Parex banka. The long-term rating of bank is at “RD” level, the short-term rating is at “RD”, the individual rating is at “F” level, and the support rating is at the level of “5”, reported the press-centre of Parex Banka.

The affirmation of the rating reflects the extension of deposit restrictions imposed on the bank by the Latvian banking regulator. At the same time, the agency notes that the restrictions, which were imposed on the bank in December 2008, gradually have been softened, as well as considerable reduction in the amount of the restricted funds.

Fitch Ratings considers as positive the government support provided to the bank, as well as the fact that the European Bank for Reconstruction and Development has become a shareholder of the bank. The agency also notes that the bank’s operations are affected by losses, the quality of assets, the need for additional capital, and deleveraging and decline in non-resident deposits. At the same time, deposits made by residents are deemed to be more stable. Although remains weak, the bank’s liquidity continues to improve.

Upward pressure on the long-term rating could arise from removal of deposit restriction and/or from successful restructuring of Parex banka.