MOSCOW, December 9. /TASS/. The 2016 outlooks for banking sectors in Russia and most other countries of the Commonwealth of Independent States (CIS) are negative, Fitch Ratings said in a report on Wednesday.
"This reflects the agency's view that lenders' financial metrics are likely to weaken further, as slower economies, weaker currencies and higher interest rates continue to hit asset quality, profitability and capital," the report said.
However, Fitch forecasts at least moderate positive economic growth across most of the region in 2016, which it says "limits downside risks." "Capital cushions are also significant in some markets and banks, providing meaningful buffers to absorb larger loan losses," the agency said.
In end-November Fitch said Russian oil outlook is also negative due to "expectation of continued low oil prices, higher taxes, an end to recent oil production growth and a gradually increasing impact from Western sanctions."