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RPT-Fitch Rates Russia-based ING Bank (Eurasia) 'BBB+'; Outlook Stable
June 20, 2013 / 9:18 AM / 4 years ago

RPT-Fitch Rates Russia-based ING Bank (Eurasia) 'BBB+'; Outlook Stable

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June 20 (Reuters) - (The following statement was released by the rating agency)

Fitch Ratings has assigned ING Bank (Eurasia) ZAO (INGR) a Long-Term Issuer Default Rating (IDR) of ‘BBB+’ and a Support Rating of ‘2’ The Outlook on the Long-term IDR is Stable. A full list of rating actions is at the end of this rating action commentary.


The bank’s IDRs, National and Support Ratings reflect Fitch’s view that INGR would likely be supported, in case of need, by its sole shareholder, ING Bank NV (ING, A+/Negative). This view is based on the high degree of integration between parent and subsidiary, the small cost of the potential support that might be required, common branding and potential reputational risks for the parent which may result from a subsidiary default. Nevertheless, Fitch classifies INGR as a subsidiary of ‘limited importance’ for the parent due to its small size (less than 1% of consolidated assets) and focused franchise.

INGR’s foreign currency Long-term IDR is constrained at Russia’s ‘BBB+’ Country Ceiling, and the local currency Long-term IDR also takes into account country risks.

Fitch has not assigned a Viability Rating (VR) to INGR due to its limited autonomy from the parent bank. The bank is highly integrated with ING in terms of strategic, operational, risk management and treasury functions.


INGR’s Long-term IDRs could be upgraded or downgraded if Russia’s Country Ceiling (BBB+) was upgraded or downgraded. The ratings could also be downgraded if there was a multi-notch downgrade of ING, although Fitch does not anticipate this at present, notwithstanding the Negative Outlook, given the parent’s ‘a’ VR.

Set up in 1993, INGR has been operating as a part of the ING Global network, with its primary focus on servicing leading domestic corporates and multinational companies operating in Russia that are also the global clients of the parent bank.

INGR reported RUB202bn of total assets and RUB3.3bn of net income at end-2012. The bank’s loan book was small (13% of assets) and concentrated, but fully performing. In addition, the large equity cushion offered strong loss absorption capacity. The bank’s liquidity was also significant, mitigating potential swings in the bank’s short-term and concentrated customer base.

The rating actions are as follows:

Long-term foreign currency IDR: assigned at ‘BBB+'; Outlook Stable

Short-term foreign currency IDR: assigned at ‘F2

Long-term local currency IDR: assigned at ‘BBB+'; Outlook Stable

National Long-term Rating: assigned at ‘AAA(rus)'; Outlook Stable

Support Rating: assigned at ‘2’

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