Moody's rates Promsvyazbank bonds Ba2

Moody's Investors Service said it assigned a Ba2 long-term global local-currency debt rating to Promsvyazbank's senior unsecured debt, including its RUB 4.5 billion of senior unsecured regular bonds due 2012 and RUB 5 billion of senior unsecured regular bonds due 2013.

The outlook is stable.

Any subsequent local-currency senior unsecured debt issuance by Promsvyazbank will be rated at the same rating level subject to there being no material change in the bank's overall credit rating.

The ratings are underpinned by the bank's entrenched market franchise in the corporate segment, along with some diversification of its business to SME and retail segments, significant geographical coverage and favorable liquidity profile and sound liquidity management, Moody's said.

The factors constraining the ratings include the bank's historically modest capital levels, the deterioration of its asset quality during the crisis times and the significant single-name concentration of the bank's loan book, the agency said.

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