The FINANCIAL -- Fitch ratings has on March 2 maintained the 'CCC' Long-term Issuer Default rating (IDR) of JSC BTA Bank (Georgia) (BTAG)'s on Rating Watch Negative (RWN), and affirmed the bank's other ratings.
Fitch has simultaneously withdrawn all of the bank's ratings. Fitch will no longer provide ratings or analytical coverage of BTAG.
The RWN reflects BTAG's still high dependence on funding from Kazakhstan's BTA Bank (BTA, rated 'RD', holds a 49% in BTAG) and continued uncertainty surrounding BTA's restructuring of its external liabilities and future support for BTAG. A total of 47% of BTAG's non-equity funding (as at 18th February 2010) is provided by BTA, the majority of which comprises borrowings which are rolled over on a regular basis. Asset quality is weak, with reported loans overdue of more than 90 days standing at 16% of total loans at end-2009. However, Fitch also notes the significant loss absorption capacity provided by the bank's capital.
Rating actions are as follows:
Long-term foreign currency Issuer Default Rating (IDR) 'CCC'; RWN; withdrawn
Short-term foreign currency IDR: affirmed at 'C' and withdrawn
Individual Rating: affirmed at 'E' and withdrawn
Support Rating: affirmed at '5' and withdrawn
Support Rating Floor: affirmed at 'NF' and withdrawn
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