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Fitch gives B- rating, "stable" outlook to Tinkoff Credit Systems.

BANKING AND CREDIT NEWS-12 May 2010-Fitch gives B- rating, "stable" outlook to Tinkoff Credit Systems(C)1994-2010 M2 COMMUNICATIONS

12 May 2010 - Fitch assigned on Tuesday a long-term issuer default rating (IDR) of B- with a "stable" outlook to Russian credit card mono-line company Tinkoff Credit Systems (TCS Bank).

The agency also gave TCS Bank a short-term IDR of B, an individual D/E rating, a support rating of 5 and support rating floor "no floor".

"The ratings of TCS Bank reflect Fitch's view on the creditworthiness of the broader group consolidated at the level of Cyprus-domiciled Egidaco Plc (TCS),", Fitch explained.

TCS Bank is the core operating entity of TCS.

The ratings are constrained by TCS's small size, limited track record, high credit risk exposure and the weaknesses in its funding profile due to its dependence on wholesale markets and high concentration risks, the agency said.

The ratings also reflect the company's recent strong profitability, the robust cash generation capacity of its portfolio and its acceptable reported asset quality to date, the rater added.

Fitch considers that its current equity/assets ratio of 16.5% is acceptable for the rating.

However, TCS's leverage ratio may be quite volatile on a short-term scale due to projected large capital market borrowings.

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Publication:M2 Banking & Credit News (BCN)
Date:May 12, 2010
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