Moody’s upgrades Promsvyazbank

Moody's Investors Service said it upgraded Promsvyazbank's long-term local- and foreign-currency deposit ratings to Ba3 from B1, senior unsecured debt ratings to Ba3 from B1 and senior unsecured medium-term note program rating to provisional Ba3 from provisional B1.

The agency also upgraded the bank's long-term counterparty risk assessment to Ba2(cr) from Ba3(cr).

All long-term ratings remain on a negative outlook.

Moody’s said the upgrade reflects its expectation that the bank will receive a moderate level of extraordinary support from the Russian authorities in case of need. This assumption of government support results in a one-notch uplift from its b1 baseline credit assessment.

The upgrade follows the Central Bank of Russia's Oct. 20 announcement that it approved the list of 10 systemically important banks and formally designated Promsvyazbank – the eighth largest banking group in Russia by total assets – as a systemically important financial institution.

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