Moody's rates Vneshtorgbank Retail

Moody's Investors Service said it has assigned ratings to JSC Vneshtorgbank Retail Financial Services in Russia, commonly known under its brand name VTB24. Ratings assigned include a Baa2 long-term foreign currency deposit rating, Prime-2 short-term foreign currency deposit rating and A1 long-term local currency deposit rating.

The outlook is stable.

At the same time, Moody's Interfax Rating Agency assigned an Aaa(ru) long-term national scale credit rating to VTB24. According to Moody's and Moody's Interfax, the A1/Baa2/Prime-2 global scale ratings reflect global default and loss expectation, while the Aaa.ru national scale rating reflects the standing of the bank's credit quality relative to its domestic peers.

According to Moody's, the bank's A1 long-term local currency rating is not constrained by any foreign currency transfer risk and is the highest currently attainable by a Russian bank.

This rating reflects the very high extent of parental support expected to be forthcoming to VTB24 from the state-owned Vneshtorgbank, which holds a 95.4% stake in the bank with the remaining part owned by the Russian government and indirectly the government support from which VTB24 may benefit.

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