Fitch affirms BMB Investment Bank; at ‘B-‘/Negative; withdraws ratings

April 15, 2014 10:11 am

Fitch Ratings has affirmed and withdrawn BMB Investment Bank’s (BMB) Long-term Issuer Default Ratings (IDR) at ‘B-‘ with Negative Outlook. A full list of rating actions is provided at the end of this commentary.

Fitch has withdrawn the ratings as BMB has chosen to stop participating in the rating process. Therefore, Fitch will no longer have sufficient information to maintain the ratings. Accordingly, Fitch will no longer provide ratings or analytical coverage for BMB.

Key Rating Drivers – IDRs and Viability Rating (VR)

BMB’s IDRs are driven by its VR (i.e its standalone strength). The VR reflects BMB’s weak profitability, limited business activities, fairly high exposure to market risk through its remaining legacy investments in private equity funds, concentrated wholesale funding profile and small equity base. Fitch also considers the bank’s achievements in reducing its exposure to private-equity fund commitments and its improved liquidity profile in recent years.

The rating actions are as follows:


Long-term IDR affirmed at ‘B-‘; Outlook Negative; withdrawn

Short-term IDR affirmed at ‘B’; withdrawn

Viability Rating affirmed at ‘b-‘; withdrawn

Support Rating affirmed at ‘5’; withdrawn

Support Rating Floor affirmed at ‘No Floor’; withdrawn


Primary Analyst
Laila Sadek
+44 20 3530 1308

Fitch Ratings Limited
30 North Colonnade
London E14 5GN

Secondary Analyst
Eric Dupont
Senior Director
+33 1 4429 91 31

Committee Chairperson
Michael Dawson-Kropf
Senior Director
+49 69 768076 113

Media Relations: Hannah Huntly, London, Tel: +44 20 3530 1153