The upgrade of UB's ratings reflects reduced asset quality risks
and vulnerability of the bank's capital position, due to sufficient state support for legacy problem assets and low-to-moderate risks stemming from other exposures.
MEXIM's ba3 stand-alone credit profile remains unchanged because the bank operates with a very strong capital buffer against the backdrop of high asset quality risks
Kazakh banks' legacy and emerging asset quality risks
are consistent with their low Viability Ratings, which reflect weak standalone credit profiles, mostly in the 'b' category.
Summary: , but growing asset quality risks
expected down the road
The outlook on the kingdom reflects S&P's view of Bahrain's stable growth, well regulated financial system, and manageable asset quality risks
amongst other factors.
While liquidity has improved and capital buffers are strong, these factors are moderated by legacy asset quality risks
, primarily related to the ongoing restructuring of some large government-related borrowers.
However, the company's focus on the Danish real estate sector hiking asset quality risks
and limiting revenue diversification along with low margins characterising the domestic mortgage market are constraining BRFkredit's ratings, S&P said.
Although asset quality risks
remain, we believe 16% D/Y in NBP could attract investor interest.
We upgrade Korea on the basis of valuations, our belief that the asset quality risks
are peaking in second quarter, some improvement in loan spreads and the rate hike of last week," said Sanjay Jain, an analyst at Credit Suisse.
We believe that downside asset quality risks
for Sberbank are limited and expect its loan impairment charges to stay around 1.
Moody's predicts reduced fiscal spending and currency devaluation that will pose additional asset quality risks
as well as funding and liquidity challenges.
The bank's focus on providing housing finance to low-to-middle income individuals exposes it to asset quality risks
, especially in light of our expectations that economic growth will remain subdued in 2015.