Moody's upgrades Rosbank

Moody's Investors Service said it upgraded the baseline credit assessment of PJSC Rosbank to Ba2 from Ba3, adjusted baseline credit assessment to Baa3 from Ba1, deposit ratings to Baa3/prime-3 from Ba1/not-prime, counterparty risk ratings to Baa2/prime-2 from Baa3/prime-3 as well as senior unsecured rating and senior unsecured credit facility to Baa3 from Ba1.

Moody's also said it upgraded its the counterparty risk assessment to Baa2(cr)/prime-2(cr) from Baa3(cr)/prime-3(cr).

The outlook remains stable.

The upgrades were driven by improvement in profitability and asset quality indicators, as well as funding structure, which now benefits from lower reliance on wholesale funding, the agency said.

Rosbank has demonstrated a track record of improved performance over the recent years, Moody's said.

The positive impact on profitability was a result of lower credit costs, improved efficiency, reduced cost of funding as well as stronger fee and commission income generation, the agency said.

Moody's also said it expects the operating profitability to continue improving in the next 12 to 18 months.

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