... EAD's (Raiffeisenbank) IDRs are based on Fitch Ratings' view that the bank is a strategically important subsidiary of its 100% owner, Raiffeisen Bank International AG (RBI; A/Negative/bbb), and that there is a high probability that RBI would support Raiffeisenbank if needed. The Negative Outlook reflects that on RBI's IDR. VR Constrained by NPLs: The Viability Rating (VR) is driven primarily by the bank's weak asset quality, counterbalanced by decent loss absorption capacity. It also factors in Raiffeisenbank's strong funding profile, its comfortable liquidity buffers and the positive influence on its risk management framework of being part of the RBI group. High NPLs, Inflow Slowing: At end-2013, the bank reported individually impaired loans and loans past due 90 days but not impaired of 18.7% of gross loans. The bank's current volume of impaired loans derives mainly from its legacy loan book, built up before 2008. Although the NPL inflow...
