Fitch puts Svyaz-Bank on positive watch

Fitch Ratings said it placed PJSC JSCB Svyaz-Bank's long-term issuer default rating of BB- on Rating Watch positive.

The agency also said it affirmed the bank's short-term issuer default rating at B and viability rating at B-.

The positive watch reflects the announced plans to transfer the bank from VEB.RF, a state-owned development bank, to Promsvyazbank, a state-owned universal bank primarily responsible for servicing state defense orders and other large state contracts, Fitch explained.

The agency said it understands that after the transfer, Svyaz-Bank could be merged with or become a core subsidiary of Promsvyazbank, given potential synergies between the banks' businesses.

Fitch said it expects to resolve the positive watch once the transfer is completed and there is more clarity about Promsvyazbank's strategy with Svyaz-Bank.

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