"The ratings reflect the relative deterioration in Commercial Bank's credit profile in terms of its asset quality and solvency indicators," a Fitch statement said.
"The Stable Outlook reflects Fitch's view that the bank could stem the further decline and strengthen its asset quality and solvency indicators supported by an improved economic environment, concerted recoveries, increased provisioning and stronger equity accretion and/ or infusion."
The rating agency said it considers that the restoration of Commercial Bank's credit profile to historical norms that were considerably superior to that of its peers could be "challenging".
A contraction in Commercial Bank's loan book amidst retarded credit growth, increased non-performing loans (NPLs) amid sluggish economic activity and "inadequate monitoring" of its collection per