S&P revises Sogaz, VTB views to developing

S&P said it affirmed the BBB- long-term issuer credit and financial strength ratings on OJSC Sogaz and VTB Insurance.

The agency also said it revised the outlook on VTB Insurance to developing from stable and the outlook on Sogaz to developing from positive.

The outlook revision follows news that Sogaz had agreed to acquire VTB Insurance from VTB Bank, subject to regulatory approval, S&P said.

The combined entity will become the largest insurance group in Russia, the agency said.

The effect of the acquisition's final terms on Sogaz's credit quality and VTB Insurance's status within the consolidated group is not yet clear, S&P noted.

The combined entity will provide both retail and corporate products, likely strengthening its market position in terms of earnings and competitive standing, the agency said.

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