Fitch Rates AO Citibank Long-Term Local Currency IDR 'BBB-'; Outlook Negative

September 07, 2016 - Cbonds


Fitch Ratings has assigned AO Citibank (Citi) a Long-Term Local Currency Issuer Default Rating (IDR) of 'BBB-' with a Negative Outlook.

Citi's Long-Term Local Currency IDR is equalised with the bank's Long-Term Foreign Currency IDR, which in turn is underpinned by potential support the bank may receive from its foreign parent, Citigroup Inc. (A/Stable/a). The bank's IDRs are constrained by Russian country risks and in line with the Russian sovereign ratings (BBB-/Negative).

The Negative Outlook on Citi's Long-Term Local Currency IDR reflects the potential for the rating to be downgraded if Russia's sovereign ratings are downgraded. A sharp deterioration in the ability or propensity of the parent bank to provide support (not expected by Fitch at present) could also result in a downgrade of the subsidiary's ratings.

A stabilisation of the operating environment, and a revision of the Outlook on the sovereign ratings to Stable, could result in the Outlook on the ratings also being revised to Stable.

The rating actions are as follows:

Long-Term Foreign Currency IDR: 'BBB-'; Outlook Negative, unaffected
Long-Term Local Currency IDR: assigned at 'BBB-', Outlook Negative
Short-Term Foreign Currency IDR: 'F3', unaffected
National Long-Term Rating: 'AAA(rus)'; Outlook Stable, unaffected
Viability Rating: 'bbb-', unaffected
Support Rating: '2', unaffected
Issuer: KB Citibank
Outstanding issues:
Issuer rating:
Fitch RatingsBBB-/StableLT Int. Scale (foreign curr.)01/27/2017
Fitch RatingsWithdrawn/National Scale (Russia)01/27/2017
Fitch RatingsBBB-/StableLT Int. Scale (local curr.)01/27/2017