Moody's could cut VTB, Vnesheconombank

Moody's Investors Service said it took actions on the supported senior unsecured debt and deposit ratings of six subsidiaries of two Russian financial institutions: Bank VTB, JSC (Baa2 on review for downgrade, standalone bank financial strength rating D-/baseline credit assessment ba3) and Vnesheconombank (Baa1 on review for downgrade).

The following actions follow Moody's April 1 placement of the debt, deposit and issuer ratings of the respective Russian parents on review for downgrade:

• VTB Bank (Austria) AG: Baa3 local- and foreign-currency deposit ratings and P-3 local- and foreign-currency short-term deposit ratings;

• VTB Capital plc: Baa3 local- and foreign-currency deposit ratings and P-3 local- and foreign-currency short-term deposit ratings;

• VTB24: Baa2 local- and foreign-currency deposit ratings, P-2 local- and foreign-currency short-term deposit ratings and Baa2 local-currency senior unsecured and senior secured ratings;

• VTB Bank (Deutschland) AG: Ba1 local- and foreign-currency deposit ratings;

• Bank of Moscow: Ba1 local- and foreign-currency senior unsecured debt and deposit ratings, provisional Ba1 senior unsecured medium-term notes and Ba3 foreign-currency subordinate;

• Kuznetski Capital SA: Ba3 foreign-currency backed subordinated debt rating;

• VTB Capital SA: Baa2 foreign-currency senior unsecured and senior secured rating; and

• SME Bank: Baa2 local-currency senior unsecured debt and deposit ratings, Baa2 foreign-currency deposit rating and P-2 foreign-currency short-term deposit rating.

The review of the parental debt, deposit and issuer ratings has prompted the review of the subsidiaries' supported ratings, which incorporate the agency's parental support assumptions.

Moody's will conclude the review of the subsidiary banks' ratings following (a) the conclusion of the review of the parents' ratings; and (b) Moody's assessment of the capacity and willingness of the parent banks to provide assistance to their domestic and international subsidiaries in the context of on-going volatility, in case of need.

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