Moody's upgrades Promsvyazbank

Moody's Investors Service said it upgraded the long-term foreign- and local-currency senior unsecured debt and deposit ratings of Promsvyazbank to Ba3 from B2, long-term counterparty risk ratings to Ba2 from B1 and long-term counterparty risk assessment to Ba2(cr) from B1(cr).

The agency said it upgraded the bank's baseline credit assessment, as well as its adjusted baseline credit assessment to Caa1 from Caa2.

The outlook remains positive.

Moody's also said it affirmed the bank's short-term deposit ratings and short-term counterparty risk ratings of not-prime, along with the short-term counterparty risk assessment of not-prime(cr).

The upgrades were driven by the completion of the bank's financial rehabilitation procedure reflected in its repayment of funding from the Central Bank of Russia, as well as in the handover of operational control from the banking sector consolidation fund to the bank's senior management team, the agency said.

The upgrades also consider a very high support from the Russian government, allowing the bank to strengthen its balance sheet and the high probability of further support from the Ministry of Finance in its backing for the bank's lending activity within its new defense sector mandate, Moody's said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.