...Support-Driven Ratings : Sberbank Europe AG's (SBEU) Issuer Default Ratings (IDRs) and Support Rating reflect Fitch Ratings' view that the bank is highly likely to be supported by its parent, Sberbank of Russia (SBRU, BBB/F2), if needed. This view is based on the strategic importance of the European subsidiaries to SBRU, full ow nership and the record of ordinary capital support. The Stable Outlook on SBEU mirrors that on the parent. Im proved Metrics, Modest Franchise : SBEU's Viability Rating (VR) reflects the bank's improved asset quality, stable capitalisation, enhanced funding profile, and a tentative recovery in earnings. It also reflects its limited franchise, an evolving strategy and the bank's ability to execute on it, as w ell as a short record of profitable performance. Enhanced Asset Quality: SBEU's impaired loan ratio materially reduced to 6.8% at end-2018 from 11.0% at end-2017, driven by a combination of cash recoveries and w rite-offs, and supported by the transfer of the...
