...Stand-Alone Strength Drives IDRs: The Long-Term Issuer Default Ratings (IDR) of Austria's three largest rated banks, Erste Group Bank AG ('BBB+'), UniCredit Bank Austria AG ('BBB+') and Raiffeisen Bank International AG (RBI, 'BBB'), are based on their stand-alone strength. Fitch Ratings downgraded their ratings after its review of sovereign support in 2Q15. Stable VRs: The three banks' Viability Ratings (VR) primarily reflect their homogeneous business models and risk profiles resulting from their broadly comparable positioning in Austria and across diverse CEE markets. The VRs also reflect Fitch's view that the banks' flexibility to deal with recurring but evolving challenges in CEE is adequate but not strong. CEE accounts for about half of their exposure but is the dominant rating sensitivity. Russia Main Immediate Risk: RBI's and, to a lesser extent, Bank Austria's, VRs are constrained by large exposure to the deteriorating Russian economy, which is increasingly denting profits. This...
