A buyout of bad assets is no longer being considered, but according to management, Absolut will receive a RUB6 billion equity injection (3% of IFRS RWAs) from NPFB
in August 2018 (the issue has already been registered).
The '5' Support Rating (SR) reflects Fitch's view that support from the bank's shareholder, although possible, cannot be reliably assessed, due to Fitch not rating NPFB
. Fitch understands that according to Russian legislation on non-government pension funds, NPFB
should transform into a joint stock company by end-2018 and that Russian Railways therefore may become its majority owner.