Moody’s ups Novikombank to B1

Moody's Investors Service said it upgraded Novikombank’s long-term global local and foreign currency bank deposit ratings to B1 from B2 and global local currency senior unsecured debt rating to B1 from B2.

Concurrently, the agency affirmed the bank's baseline credit assessment of b2 and short-term local and foreign currency deposit rating of Not-Prime.

The outlook is stable.

Concurrently, Moody's upgraded Novikombank's long-term counterparty risk assessments to Ba3(cr) from B1(cr) and affirmed short-term counterparty risk assessment of Not-Prime(cr).

Moody's Interfax Rating Agency also upgraded Novikombank national scale deposit rating to A2.ru from Baa1.ru.

The action is primarily based on Novikombank's audited financial statements for 2014 prepared under IFRS.

Moody’s said the upgrades reflect its assessment of moderate probability of systemic support to the bank in case of need, channeled through the bank's core shareholder Russian State Corp. "Russian Technologies" (RosTec, unrated), that controls 58% stake in Novikombank. This resulted in a one-notch uplift to the bank's debt and deposit ratings of B1 from its baseline credit assessment of b2.

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