Moody's changes BTA Bank "В1" rating for "stable"

/REUTERS, Moscow, July 2, 08 / - International rating agency Moody's confirmed long-term deposit ratings of BTA Bank (Russia) in foreign and local currency, and long-term priority rating in foreign currency at "B1" level, having changed the forecast from "positive" to "stable", is said in the message of Moody's. The Agency also has confirmed the rating of financial stability of the bank at "Е+" level with stable forecast, and short-term ratings in local and foreign currency at "Not Prime" level. The decision of Moody's has been linked with necessity to bring ratings of BTA Bank (Russia) in compliance with ratings of BTA Bank (Kazakhstan), which holds a controlling block of stock of the Russian bank. Below is the original of the Moody's message in English. MOODY'S CHANGES OUTLOOK ON BTA BANK (RUSSIA)'S B1 RATINGS TO STABLE FROM POSITIVE Moscow, July 2, 2008 - Moody's Investors Service today affirmed the B1 long-term local and foreign currency deposit ratings and B1 foreign currency senior unsecured debt rating of BTA Bank (Russia) ("the bank") and changed the outlook on the ratings to stable from positive. At the same time, Moody's affirmed BTA Bank (Russia)'s E+ bank financial strength rating ("BFSR") with its existing stable outlook, as well as its Not Prime short-term local and foreign currency deposit ratings. Concurrently, Moody's Interfax Rating Agency affirmed the bank's A1.ru National Scale Rating, which carries no specific outlook. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency. The rating action is a result of the alignment of BTA Bank (Russia)'s ratings with those of its support provider, BTA Bank (Kazakhstan), which owns a controlling interest in the Russian bank, in accordance with Moody's JDA methodology for banks. BTA Bank (Kazakhstan) currently has a D- BFSR, with a negative outlook, which maps to a Ba3 baseline credit assessment. Reflecting Moody's assessment of a high probability of parental support for BTA Bank (Russia) from BTA Bank (Kazakhstan), the Russian subsidiary's deposit ratings of B1 benefit from a one-notch uplift from its own B2 baseline credit assessment (mapped in turn from its E+ BFSR). Moody's noted that the assessment of a high probability of parental support encompasses BTA Bank (Kazakhstan)'s majority control of BTA Bank (Russia), which it exercises through its representatives on the Board of Directors, as well as its close strategic and managerial oversight of the subsidiary's business activities. In addition, the association between the two banks was strengthened through the recently completed re-branding programme under which the Russian subsidiary changed its legal name from LLS "Slavinvestbank" to BTA Bank LLS. According to Moody's, the stable outlook on BTA Bank (Russia)'s ratings is indicative of the firm positioning of the bank's stand-alone credit quality, which is supported by its stable, albeit not sizeable, franchise in both the corporate and retail market segments in Russia, its growing geographic diversification, as well as good financial performance, sound liquidity position and good asset quality to date. BTA Bank (Russia) is headquartered in Moscow and had total IFRS assets of USD1.4 billion at year-end 2007. The bank's distribution network comprises nine branches and 21 additional offices located in a number of large cities in Russia. BTA Bank (Kazakhstan) is domiciled in Almaty and reported total IFRS assets of USD25.5 billion at year-end 2007. The bank has 22 branches and 289 additional offices throughout Kazakhstan, as well as a network of partner banks in Ukraine, Russia, Belarus, Georgia, Armenia, Kyrgyzstan and Turkey and representative offices in Russia, Ukraine, China and the UAE Moscow Olga Ulyanova Asst Vice President - Analyst Financial Institutions Group Moody's Eastern Europe Telephone: +7 495 641-1881 Facsimile: +7 495 641-1897 London Reynold R. Leegerstee Managing Director Financial Institutions Group Moody's Investors Service Ltd. JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 [2008-07-03]