Fitch lowers MTS Bank view to stable

Fitch Ratings said it revised MTS Bank's outlook to stable from negative and affirmed its long-term issuer default rating at BB- and short-term issuer default rating at B.

This follows a similar rating action on the parent, PJSC Mobile TeleSystems.

The ratings are driven by potential support, in case of need, from the bank's parent, MTS, Fitch said.

MTS has a strong propensity to support the bank given its majority 95% ownership; strategic synergies between the bank and the telecom company, which may be realized with increasing integration, shared brand and reputational considerations, the agency said.

The two-notch difference between the ratings reflects the subsidiary's limited franchise and strategic importance for the parent, Fitch said.

The ratings also consider increasing integration with the parent and a limited record of profitable performance, the agency added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.