Russia's National Bank Trust will no longer work with Fitch international rating agency and has asked the agency to withdraw its assigned credit ratings, after Fitch downgraded the bank's long-term default rating from "B-" to "CCC" in July, a bank spokesman told RIA Novosti.
"Under the circumstances, our further cooperation with the agency does not meet the interests of the bank and causes significant damage to its market position and reputation," the bank said in a letter to Fitch. "National Bank Trust announced the termination of this agreement [between the bank and the agency about the rating]."
Fitch was concerned about the quality of the bank's assets, its capitalization level and also its falling profitability.
The bank's net losses at the end of 2009 totaled 773.074 million rubles ($25.37 million) to Russian Accounting Standards. The bank did not publish its 2009 results to IFRS on its website.
Fitch informed the bank that publication of its 2009 results to IFRS would have fundamental importance for defining its rating, according to a Fitch representative. The bank offered the agency an audit conducted by auditor KPMG which was accepted by the auditor "without any stipulations," the representative added.
"The agency's audit, published on July 13, 2010, contained assertions which clearly cast doubt on its validity," the bank said in a letter, calling the audit "unbalanced."
"In particular, the agency mentioned the lack of transparency surrounding certain separate articles about bank assets, in the assumption that the form of their presentation in the audit does not correspond to existing bank operations," it added.
"In the latest agency audits related to the bank we observe assertions which are moot from the professional point of view," the bank said. "For instance, several credit deals were qualified as being the source of increased risks."
Trust also claims the agency's assessment of the bank's assets is doubtful.
In addition to Fitch, Trust also holds ratings from Moody's rating agency.
National Bank Trust was established in November 2008 after merging with the investment bank Trust.
MOSCOW, July 20 (RIA Novosti)
