Fitch boosts International Moscow Bank

Fitch Ratings said it upgraded International Moscow Bank's (IMB) ratings to long-term foreign currency BBB from BB and short-term F3 from B and removed them from Rating Watch Positive.

Fitch said it also assigned a long-term local currency rating of BBB+ while upgrading the support rating to 2 from 3.

The agency noted the rating action follows an announcement regarding the successful completion by UniCredito Italiano (UCI) of its bid to acquire Bayerische Hypo- und Vereinbank. With the acquisition, UCI will become IMB's new ultimate controlling shareholder.

The upgrade reflects Fitch's view of the greater ability of IMB's new, indirect, majority shareholder, UCI, compared with that of HVB on a standalone basis, to provide IMB with support, if needed, as indicated by its higher long-term A+ and individual B/C ratings.

However, IMB's long-term foreign currency rating is constrained by the BBB country ceiling for Russia, the agency said.

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