...Ratings Driven by Intrinsic Strength: Sberbank of Russia's (SBR) ratings reflect its robust domestic franchise and significant pricing power, which is driven by the bank's stable, cheap and granular funding base. This results in consistently strong performance and resilient asset quality. In Fitch Ratings' view, SBR's intrinsic credit strength, as measured by its Viability Rating (VR), is close to and correlated with that of the sovereign. High Probability of State Support: SBR's ratings are also underpinned by potential support from the state. We believe the authorities would have a high propensity to support SBR because of its exceptional systemic importance and dominant market shares. Other factors include its majority ownership by the Central Bank of Russia (CBR, 50% + one share) and the high reputational risks for the Russian authorities if SBR defaults. Stable Asset Quality Outlook: Impaired loans (Stage 3 and POCI loans under IFRS 9) equalled 8.4% of end-1H18 gross loans measured...
