London: Fitch Ratings has affirmed and withdrawn BMB Investment Bank’s (BMB) long-term issuer default ratings (IDR) at B- with negative outlook.
Fitch has withdrawn the ratings as BMB has chosen to stop participating in the rating process.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.
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.