OREANDA-NEWS. June 17, 2013. Fitch Ratings has affirmed AK BARS Bank's (ABB) Long-term Issuer Default Rating (IDR) at 'BB-' and revised the outlook to Stable from Negative.

AK BARS’ IDR affirmation and outlook revision prove AK BARS’ stable performance as well as positive perspective trend.

Key factors contributing to positive revision are: the moderate support which has been made available to the bank by its main controlling shareholder, the Republic of Tatarstan’s (RT; 'BBB?'/Stable); decrease in investment properties stabilising high-risk assets.

AK BARS’ IDR, senior debt, National and Support Ratings continue to reflect Fitch’s view of the moderate probability of support from RT. This view is based on (i) ABB’s considerable market shares in the region, (ii) its large deposit base, (iii) RT’s ultimate control over the bank, (iv) the close association between the local authorities and the bank and (v) significant non-equity funding made available to AK BARS BANK by the local government and government-related entities.

IDR affirmation and outlook change are, undoubtedly, positive developments. In the mean time, the Bank will take Fitch Rating’s comments into account and will initiate measures to maintain its positive rating trend.