Fitch upgrades Russia's Alfa Bank ratings

MOSCOW, September 8 (RIA Novosti) - International ratings agency Fitch Ratings said Friday it had upgraded Russia-based Alfa Bank's issuer default and national long-term ratings to BB- (from B+) and A+(rus) (from 'A(rus), respectively, both with stable outlooks.

Bank's individual rating was also upgraded to C/D (from D), whereas Alfa's other ratings were affirmed at Short-term B and Support 4, the agency said in a statement.

Fitch said the upgrade reflected the improvements in the core earnings of Alfa Banking Group ("ABG") of which Alfa is the main operating entity and reduced loan concentration, improved funding and capital flexibility following international debt issuance, and improvements in the operating environment.

Founded in 1990, Alfa Bank is one of Russia's top 30 banks by assets (valued at $9.8 bln as of December 31, 2005).

Alfa Bank said last week its net profit according to Russian Accounting Standards rose 25% year-on-year in the first seven months of 2006 to 2.12 bln rubles ($78.5 mln), with pre-tax profit in the reporting period growing 46.7% year-on-year to 2.9 bln rubles ($107 mln).