S&P ups some Promsvyazbank ratings

Standard & Poor's said it raised its long-term counterparty credit and certificate of deposit ratings on Promsvyazbank JSCB to B from B- and affirmed the short-term ratings at C.

The outlook is stable.

S&P said the upgrade reflects the maintenance of adequate capitalization supported by a new share issue in July; good profitability backed by recurrent revenues; and a focused strategy, which should support its franchise and financial performance in an increasingly competitive Russian banking market.

The ratings are constrained by the bank's rapid branch network expansion, which is likely to heighten operational risks and be a cost burden in the medium term; still sizable concentrations in assets and liabilities; and a risky operating environment in Russia, the agency said.

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