OREANDA-NEWS. National Rating Agency has lowered its national scale credit rating on FIA BANK JSC (AO 'FIA-BANK') to 'BBB-' and placed the rating on its Watchlist with a negative outlook. The assigned credit rating is under review since placement on the Watchlist. The 'A' national scale credit rating had been originally assigned in February 2010. The last rating action took place on May 5, 2015, when the credit rating was affirmed at 'BBB' with a negative outlook.

Among the main factors that led to the rating downgrade and its placement on the Watchlist with a negative outlook, the Agency highlights increase in loan loss provision and similar debts, which led to the violation of capital adequacy rates. Additional pressure on the capital stability provides insufficient amount of reserves and lowered ability of the main shareholder to support the bank in maintaining the capital stability.

The Agency notes the significant account balance for interest, which, apart from reserves, makes up more than 1 billion rubles (over 40% of the bank's capital), while at the same time the quality of the borrowers is estimated as being low.