Fitch reported a possible default of the Asian-Pacific Bank

He is unlikely to avoid this trouble.
The default of the Asia-Pacific Bank (ATB, the 61st largest asset in the Interfax-CEA ranking) is a real possibility, Fitch reported in a comment to the decision to maintain a "negative" outlook on the bank's rating. Now it's CCC - in the Fitch classification this means the possibility of default. The agency writes that he knows that ATB has agreed with the Central Bank on a financial recovery plan, in part it must be completed within the next few months. But the collapse of designs can lead to intervention of the regulator. The liquidity margin of the ATB is acceptable, the agency points out. All this applies to Uraltransbank (CCC rating), the agency reports, but it has more liquidity than ATB.

ATB depends on the CBR's easiness to reserve a loan, issued to a subsidiary of M2M Privet Bank (lost license in December last year). The amount of the loan is 7.2 billion rubles. The term of the installment of the Central Bank expires by 2018.

If ATB fully reserves the loan, its fixed capital and total capital will collapse to 3.1 and 6.1%, respectively, which is below the minimum requirements, the Fitch said. The bank has reserved 32% on the M2M loan. The bank has a detailed plan on how to comply with the Central Bank's requirement: converting subordinated debt into perpetual subordinated liabilities, selling non-core investments in shares, restoring certain reserves and generating profits, lists Fitch. But the fulfillment of all these requirements can be difficult, the agency believes. In addition, loan reservations to related parties may be required, Fitch notes.

 With the exception of this, the remaining loans of ATB are of acceptable quality, and profitability is adequate, "which indicates a reasonable prospect of sustainability, provided that the bank successfully restores its capitalization," Fitch believes.

ATB believes that the conclusions of analysts are not substantiated by the financial situation of the bank, his representative said: the reservation for investments of ATB in M2M is almost fulfilled and is in full compliance with the schedule.

In early November, Fitch lowered its rating to CAS to Vostochnoye, also actively operating in the Far East (40th place in terms of assets). The reason is a noticeable deterioration in the quality of the bank's capital after its merger with Uniastrum Bank. The latter has significant investments in investment property, shares that are not traded, and risky corporate loans (all together - about 33.9 billion rubles.), The agency wrote. Alexei Kordichev, the presenter of Vostochnoye, said that the bank considers the rating of the agency to be excessively conservative.

On Thursday, the yield of subordinated bonds of Vostochny with redemption in 2018 on the Moscow stock exchange exceeded 400% per annum. "The fact that the credit risk at the bank is high, investors have been clear for a long time," - says analyst of Raiffeisenbank Denis Poryvay. The yield growth for this issue was at a small trading volume - it did not exceed 5 million rubles. This is 0.1% of the issue, a spokesman for Vostochny reported. The situation is alarming, says expert "Expert RA" Stanislav Volkov. Vostochny and ATB have a very strong presence throughout the Far East, and not all of these regions are of interest to federal players. "ATB has a serious situation with a delay in reserves, which is received, among other things, because of the regulator's concern about the availability of financial services in the region," Volkov notes.