OREANDA-NEWS. Fitch Ratings has placed Russian leasing company Carcade LLC on Rating Watch Negative (RWN), following its recent announcement that its current owners have agreed to sell the company to the shareholders of Russia-based Forus Bank. A full list of rating actions follows at the end of this commentary.

KEY RATING DRIVERS
The RWN reflects potential changes in Carcade's strategy, risk appetite, balance sheet structure, financial metrics and possible contingent risks arising from other assets of the new owners, including Forus Bank, following the change in ownership.

Fitch's previous rating action was on 11 December when the agency affirmed Carcade at 'BB-' with a Negative Outlook, reflecting the company's sound liquidity and solid solvency. The Negative Outlook reflected moderate deterioration of asset quality and financial performance, as well as potential further pressure on metrics from a difficult operating environment, including in the core car/SME segments (see 'Fitch Upgrades BaltLease and Affirms Carcade, Outlooks Negative' on www.fitchratings.com).

RATING SENSITIVITIES
The ratings could be downgraded if Fitch concludes that the company's strategy, risk appetite balance sheet structure and/or financial metrics are likely to significantly weaken following the ownership change, or if the company becomes significantly exposed to related parties, non-core assets or other significant contingent risks arising from the other assets of the new owners.

In line with other privately-owned Russian leasing companies, the company could also be downgraded if (i) the weaker operating environment translates into significant deterioration of financial metrics; or (ii) prospects for Russia's economy weaken further beyond Fitch's current expectations.

The ratings could be affirmed if Fitch concludes that the change in ownership is broadly neutral to the company's credit profile, the Russian economy performs better than currently expected and Carcade's performance remains sound.

The rating actions are as follows:
Long-term foreign and local currency Issuer Default Ratings (IDRs): 'BB-', placed on RWN
Short-term foreign-currency IDR: affirmed at 'B'
National Long-term Rating: 'A+(rus)', placed on RWN
Senior unsecured debt: 'BB-'/'A+(rus)', placed on RWN.