Fitch lifts five Russian banks

Fitch Ratings said it upgraded the issuer default and senior unsecured debt ratings of Russian Agricultural Bank, Sberbank-Savings Bank of the Russian Federation, Vnesheconombank and Vneshtorgbank to BBB+ from BBB following the recent upgrade of the Russian sovereign foreign and local currency issuer default ratings. The banks' short-term ratings were upgraded to F2 from F3.

In addition, the ratings on Sberbank's $1 billion subordinated debt issue due 2015 and Vneshtorgbank's $750 million subordinated debt issue due 2015 were upgraded to BBB from BBB-.

All of the banks' other ratings were affirmed, and the outlook is stable.

Fitch said its view of the propensity of the Russian authorities to support these four banks, and hence the support floors for their issuer default ratings, will continue to depend, among other things, on the banks' status, ownership and importance to the Russian banking system.

Fitch also upgraded International Moscow Bank's foreign currency issuer default rating to BBB+ from BBB and foreign currency short-term rating to F2 from F3 and placed the bank's local currency issuer default rating of BBB+ on positive watch.

As a result of Vneshtorgbank's upgrade, Fitch also upgraded its subsidiary banks and leasing company: the issuer default and senior unsecured debt ratings of Banque Commerciale pour l'Europe du Nord - Eurobank, Industry & Construction Bank St. Petersburg, Moscow Narodny Bank Ltd. and Russian Commercial Bank (Cyprus) Ltd. were upgraded to BBB from BBB-; the issuer default ratings of VTB Leasing and VTB Retail Financial Services were upgraded to BBB+ from BBB; and Industry & Construction Bank's $400 million subordinated debt issue due 2015 was upgraded to BBB- from BB+.

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