S&P ups MDM Bank to BB-

Standard & Poor's said it raised its long-term counterparty credit rating on MDM Bank to BB- from B+, and affirmed its B short-term counterparty credit rating.

The outlook is stable.

The action reflects S&P's increased confidence that MDM's newly adopted strategy will positively affect its commercial and financial standing going forward, and the bank's increasing business diversification and core profitability.

The ratings continue to reflect the still-challenging operating environment in Russia, the agency added, the bank's high single-party concentrations in deposits and high competition.

These negative factors are partly mitigated by MDM's good customer franchise, strengthening recurrent profitability, adequate capitalization and reduced appetite for market risks, S&P said.

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