Forecast for Capital Bank

Fitch analysts noted that the rating increase the stability of Capital Bank reflects the improved performance of the bank and strong capitalization. .

"The structure has a good level of liquidity, as evidenced by the lack of material non wholesale borrowing and good volume of deposits," says the report, with the caveat that the issuer default rating of Capital Bank can be reduced by decreasing the country's sovereign rating, a significant reduction of the importance of the system of the bank or in case if necessary, the bank does not receive timely support. However, at the present time, Fitch believes such scenarios are unlikely.

In addition, the agency notes that the stability rating of Capital Bank may be increased if this structure is able to maintain the high quality of the assets in the retail portfolio, which in turn will allow it to continue its activities at a good level.

JSC Capital Bank (former Savings Bank) is the oldest financial structure of the country. The main owner of the bank's securities is Pasha Holding (99.8%), while individuals account for 0.2%. --17D-

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