OREANDA-NEWS. June 10, 2010. Fitch Ratings upgraded LOCKO-Bank’s long-term Isuuer Default Rating to ‘B+’ from ‘B’. The upgrade resolves the Rating Watch on the Bank’s rating; Stable Outlook was assigned to the new rating, reported the press-centre of LOCKO-Bank.

The rating action reflects improved profitability, reasonable asset quality through the crisis, satisfactory capital positions and low refinancing risks of LOCKO-Bank.

Fitch Ratings said: “LOCKO-Bank has successfully repaid a significant portion of its wholesale obligations, as they fell due in mid-2009 and Q1-2010, as a result of which foreign refinancing risk has substantially decreased. The Bank’s reported asset quality metrics have also been reasonable to date. NPLs were 2.5x covered by loan impairment reserves (LIR) at end-Q1-2010, and capitalization is adequate (Basel I tier 1 and total capital ratios were 17% and 19%, respectively at end-Q1-2010)”.

Dmitry Kryukov, Chairman of the Executive Board, said, “We are pleased with this upgrade, and believe it reflects strengthening of LOCKO-Bank’s franchise. We also view this as a sign that our prudent approach to liquidity and asset quality management has successfully brought us through the severe financial crisis. LOCKO-Bank remains very focused on sustainable development across all business lines with specific emphasis on maintaining high operating efficiency and employing best corporate governance standards”.