Moody's ups DeltaCredit Bank

Moody's Investors Service said it upgraded the long-term foreign currency bank deposit rating of Russia's DeltaCredit Bank to Baa2 from Ba2, the short-term deposit rating to Prime-2 from Not-Prime and the bank's national scale rating to Aaa.ru from Aa2.ru.

The outlook is stable.

The rating actions conclude the review process that was initiated on Sept. 5 following the announcement that Societe Generale (Aa2,/stable) would acquire a 100% stake in the bank.

The upgrade is based on Moody's assumptions regarding Societe Generale's strong commitment to and implicit support for DeltaCredit Bank.

As the rating is constrained by the country ceiling, it is expected to follow the future movements of the ceiling; on the upside it could move up to a level commensurate with the bank's standalone rating and the level of implicit support from the bank's strategic shareholder, Moody's said.

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