...Stable Performance: Joint Stock Company LOCKO-Bank's ratings reflect its stable financial performance through the credit cycle due to its only moderate asset-quality deterioration, healthy performance, reasonable capitalisation and improved funding structure. The Outlook was revised to Stable from Negative in October 2016, reflecting Fitch Ratings' view that Locko's pre-impairment profitability should cover potential loan impairments, preventing losses from hitting capital. Reasonable Asset Quality: Non-performing loans (NPLs; more than 90 days' overdue) accounted for a moderate 7% of gross loans at end-2016, with restructured loans making up an additional 4.2%. Total NPLs and restructured loans were 0.6x covered by reserves, which Fitch views as reasonable as most restructured loans are amortising in line with renegotiated terms and most problem loans (NPLs and restructured loans) are at least partially backed by collateral. Moderate Loan Book Concentration: The 25 largest loans equalled...
