Moody's affirms Vnesheconombank

Moody's Investors Service said it affirmed Vnesheconombank's Baa1/prime-2 long- and short-term issuer ratings, along with its baseline credit assessment of 14, which maps to a B1.

The outlook is stable.

The ratings are based on the bank's audited financial statements for 2009, Moody's said.

The ratings remain supported by the bank's exclusive role as a development bank in Russia operating under a special law, Moody's said.

The high probability of support from the government is based on the bank's 100% state control, the agency said, and evidenced by a strong history of ongoing government support.

The ratings are constrained by the bank's high exposure to credit risk due to industry concentrations in loans, high exposure to market risk stemming from investments in equities and concentrated funding base, which is dominated by government funds, Moody's said.

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