Moody’s raises Raiffeisenbank, debt

Moody's Investors Service said it upgraded AO Raiffeisenbank’s long-term local-currency deposit ratings and local-currency senior unsecured debt ratings to Baa3 from Ba1.

The long-term foreign currency deposit rating was affirmed at Ba2.

The outlook is stable.

Concurrently, the agency upgraded the bank's adjusted baseline credit assessment to baa3 from ba1 and long-term counterparty risk assessment to Baa2(cr) from Baa3(cr), as well as the short-term local-currency deposit rating to Prime-3 from Not Prime.

Moody's affirmed the ba1 baseline credit assessment, Not Prime short-term foreign-currency deposit ratings and Prime-3(cr) short-term counterparty risk assessment.

Moody’s said the action primarily reflects the upgrade of its parent Raiffeisen Bank International AG's (RBI, A3/A3 stable, baa3) baseline credit assessment to baa3 from ba1, which resulted in one notch of rating uplift for Raiffeisenbank from affiliate support.

The one-notch uplift from affiliate support in the adjusted baseline credit assessment reflects the agency’s view of a high likelihood of support from Raiffeisen Bank International for its Russian subsidiary, Moody’s added.

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