Fitch changes Russian financials to positive

Fitch Ratings said it revised the outlooks to positive from stable on 23 Russian financial institutions, comprising four state-related banks, 10 foreign-owned banks, certain subsidiaries of the state-related and foreign banks and National Clearing Centre (NCC).

The long-term issuer default ratings were affirmed. All other ratings of these entities are unaffected.

Fitch said the actions follow the Sept. 22 revision of the outlook on Russia's sovereign issuer default ratings to positive from stable.

According to the agency, the revision of the outlooks on the long-term issuer default ratings of Sberbank of Russia (SBR, BBB-), Vnesheconombank (VEB, BBB-), Russian Agricultural Bank (RusAg, BB+) and Gazprombank (JSC) (GPB, BB+) reflects the increased likelihood of a strengthening of the government's ability to provide support.

The revision of the outlook on NCC's foreign currency issuer default rating reflects the increased likelihood of an upgrade of Russia's country ceiling of BBB- following the change in the sovereign outlook. NCC's foreign currency issuer default rating is driven by the entity's viability rating of bbb and capped by Russia's country ceiling.

The revised outlooks on the long-term issuer default ratings of Bank of China (Russia), China Construction Bank (Russia) Ltd., AO Citibank, Credit Agricole CIB AO, Danske Bank (Russia), HSBC Bank (RR) LLC, ING Bank (Eurasia) JSC, JSC Nordea Bank, SEB Bank JSC, DeltaCredit Bank, Rosbank and Rusfinance Bank (all BBB-), reflect the increased likelihood of an upgrade of Russia's country ceiling of BBB- following the change in the sovereign outlook.

The change in outlooks on the long-term issuer default ratings of Sberbank Leasing (BBB-), Subsidiary Bank Sberbank of Russia JSC (BB+), Sberbank Europe AG (BB+), Sberbank (Switzerland) AG (BBB-), Gazprombank (Switzerland) Ltd. (BB+) and JSC VEB-Leasing (BBB-) reflects the possible strengthening of their parents' ability to support them, if needed. The ratings of these entities reflect their relative strategic importance to, and integration with, their parents and the record of support.

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