Moody's upgrades Bank Otkritie

Moody's Investors Service said it upgraded the long-term foreign- and local-currency senior unsecured debt and deposit ratings of Bank Otkritie Financial Corp. PJSC to Ba2 from B1, its long-term counterparty risk ratings to Ba1 from Ba3 and long-term counterparty risk assessment to Ba1(cr) from Ba3(cr).

The agency also said it upgraded the bank's baseline credit assessment, as well as its adjusted baseline credit assessment to B3 from Caa1.

The outlook also was revised to stable from positive.

The upgrades were driven by the significant reduction of the bank's exposures to problem assets after the transfer of non-performing assets to National Bank Trust under the financial rehabilitation program, Moody' said.

The upgrades also consider the visible progress in streamlining the group structure after its merger with B&N Bank, the agency said, along with its return to profit under its new strategy and very high demonstrated support from the Russian government.

The bank has made significant progress in streamlining its non-banking and banking businesses, Moody's said.

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