S&P: Alfa-Bank outlook positive

Standard & Poor's said it affirmed the B+ long-term and B short-term global scale counterparty credit ratings and its ruA+ Russia national scale rating on OJSC Alfa-Bank and revised the outlook to positive from stable.

"The outlook revision reflects Alfa-Bank's improving financial profile, namely its stronger balance sheet liquidity; the stabilization of asset quality and core revenues; and maintenance of capitalization at an adequate level," S&P analyst Elena Romanova said in a statement.

The bank's financial and business profiles have suffered as a result of the more challenging conditions in Russia and global markets, the agency said.

Credit risks are exacerbated by high single-name and industry concentrations, especially in the high-risk construction sector, the agency noted.

The positive outlook reflects the view that Alfa-Bank's financial profile will continue to improve over the next 12 months, with asset quality and subsequent credit losses reducing to more manageable levels, S&P said.

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