Moody's lifts Promsvyasbank view to positive

Moody's Investors Service said it changed to positive from stable the outlook on Russia-based Promsvyasbank's Ba3 long-term foreign-currency deposit ratings, Ba3 $125 million 8¾% senior unsecured loan participation notes and the B1 $200 million 9 5/8% subordinated loan participation notes issued by PSB Finance SA.

The change of outlook follows the successful acquisition of a 15% stake of Promsvyasbank by Commerzbank AG (A2/Prime-1/C+), which is likely to be followed by the acquisition of a controlling stake. The agency said the change of outlook reflects the increased probability of the successful acquisition of the controlling stake of the bank by Commerzbank in the future.

Moody's noted that the foreign-currency deposit and debt ratings may be raised by several notches following finalization of the acquisition of the controlling stake in Promsvyasbank as a result of factoring in parental support.

However, the ratings have not been upgraded because the final outcome of the transaction still carries a high degree of uncertainty, the negotiations are still underway and the structure of the transaction is still to be developed, the agency added.

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