Moody's upgrades Industry & Construction Bank

Moody's Investors Service said it upgraded the long- and short-term foreign currency bank deposit ratings of Russia's Industry & Construction Bank from Ba1/Not Prime to Baa2/Prime-2 - the country ceiling for foreign currency bank deposits.

The bank's senior unsecured and subordinated foreign currency debt ratings have also been upgraded to A3 from Ba1 and to Baa1 from Ba2, respectively. The long-term national scale credit rating was upgraded to Aaa.ru from Aa1.ru, and the financial strength rating remains unchanged at D-.

The outlook for the long-term and short-term deposit ratings and financial strength rating is stable. The outlook for the senior and subordinated debt ratings is positive.

Moody's said the rating actions reflect the finalization of the acquisition of a 75% + 3 shares stake in the bank by Russia's Vneshtorgbank (Baa2/Prime-2/D-) and the latter's strong propensity and capacity to support Industry & Construction Bank in case of need.

The positive outlook on the bank's senior unsecured and subordinated foreign currency debt ratings is based on Moody's expectation that the bank will be fully absorbed by Vneshtorgbank.

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