S&P upgrades MDM Bank

Standard & Poor's said it raised its long-term counterparty credit rating on Russia-based MDM Bank to BB from BB- and affirmed the B short-term counterparty credit rating. The senior unsecured rating was raised to BB from BB-, and the subordinated debt rating was raised to B+ from B.

The outlook is stable.

S&P said the upgrade reflects MDM's sustained commercial and financial performance, and its consistent progress in decreasing its single-name lending concentrations.

The ratings remain constrained by the bank's high single-party concentrations in deposits, continued reorganizational challenges related to the recently adopted strategy and ongoing optimization program, high competitive pressures and declining capitalization, the agency said.

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