Long-Term IDR raised to Stable from Negative
Follows similar revision by S&P Global Ratings
London and Moscow, 24 January 2017 - Renaissance Capital is pleased to announce that Fitch Ratings has revised its Outlook on the investment bank’s holding company Renaissance Financial Holding Limited's (RFHL) Long-Term Issuer Default Rating (IDR) to Stable from Negative. The IDR was affirmed at 'B-'.
According to Fitch, the revision of the Outlook to Stable reflects reduced pressure on RFHL's performance and risk profile due to the stabilisation of the Russian operating environment. Fitch notes that the positive change in the outlook is due to an extended record of stable operations and liquidity management since the takeover of the company in 2012, in part - to shareholder support; and reduced contingent risks from sister retail bank Renaissance Credit.
Fitch positively views that Renaissance Capital has benefited from support provided by ONEXIM, who has expressed its commitment and provided support to the company.
At the same time, the bond rating of 'B-' is driven by the Long-Term IDR and Fitch's assessment of average recovery prospects in the event of a default. Fitch concludes that a positive rating action is possible and is contingent on a few factors in company’s performance going forward.
Anthony Simone, Acting CEO, Renaissance Capital, commented: “The outlook revision from Fitch follows a similar action by Standard & Poor’s in October 2016. We are very pleased that Fitch has recognised the consistent stability of our business during these turbulent times in global markets as we are constantly working towards growing profitability to maintain our competitive position in all our existing and new geographies.”