S&P ups Promsvyazbank to B+

Standard & Poor's said it raised its long- and short-term counterparty credit ratings on Promsvyazbank JSCB to B+/B from B/C and removed the ratings from positive CreditWatch.

The outlook is positive.

The upgrade is based on the bank's strengthened financial profile after a new capital increase from Commerzbank, which has acquired a 15.3% in the bank through a new $157 million share issue, S&P said.

At this early stage, the ratings do not factor in additional ownership support from Commerzbank over and above the recent capital increase, the agency said, however should Commerzbank proceed with its plan to substantially increase its stake to eventually gain the majority ownership, the ratings on Promsvyazbank could be raised by up to three notches reflecting the strength of Commerzbank's longer term commitment.

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