S&P lifts VTB Bank (Georgia) view to positive

S&P said it revised the outlook on VTB Bank (Georgia) to positive and affirmed the BB- long-term and B short-term issuer credit ratings.

The positive outlook reflects the outlook on the government of Georgia, as well as VTB Bank (Georgia)'s strategic importance to its parent, the agency explained.

S&P said it continues to consider VTB Bank (Georgia) to be a strategically important subsidiary of VTB Bank JSC, which is expected to provide both ongoing and extraordinary support if needed.

But the agency said it does not think VTB Bank (Georgia)'s creditworthiness could exceed that of the sovereign because the bank operates solely in Georgia.

S&P also said it thinks a sovereign default could significantly constrain VTB Bank JSC's ability to provide support to its subsidiary.

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