... IDRs reflect Fitch Ratings' view that it is highly likely the bank would be supported by Sberbank of Russia (Sberbank; BBB/Negative/bbb) if need be. Sberbank holds a 99.85% stake in Denizbank with the remaining belonging to private individuals. The agency classifies Denizbank as a "strategically important" subsidiary for Sberbank, given the latter's focus on expansion in Eastern Europe, and believes Sberbank would have a high propensity to provide support in case of need. Lower Capitalisation: Denizbank's capitalisation decreased strongly in 2013 due to high loan growth. The Fitch core capital (FCC)/risk-weighted assets ratio was just 8.1% at end-2013, much lower than peers. The total capital ratio, including subordinated debt provided by its parent, is higher at 12.1% but still below the system average of 15.3%. In Fitch's view, Denizbank would need a further capital injection or subordinated debt to facilitate targeted high loan growth...
