Fitch has upgraded its individual rating for Komercni banka to B/C from C, whilst maintaining its other ratings on the bank at Issuer Default AA-, Short-term F1+, and Support 1. The upgrade was reported to reflect the bank's low-risk profile and good financial performance, with rapid but well-managed loan growth and good progress on BIS 2 preparation.
Our view:
Market attention is focused on the outlook for 4Q06 results, due out next week, and speculation on the level of dividend that management will propose this year. We do not expect the Fitch upgrade to have any trading impact.