Moody's upgrades ten Russian banks

/IRBIS, July 17, 2008/ - London, 16 July 2008 - Moody's Investors Service has upgraded to Baa1 the long-term foreign currency deposit ratings of ten Russian banks and changed the outlook on the A2 senior unsecured foreign currency debt ratings of three Russian banks to positive. All other ratings and existing outlooks of the banks have been affirmed. These rating actions have been triggered by the upgrade to Baa1 (positive outlook) of the local and foreign currency bond ratings of the Russian government earlier today. The outlook on Russia's A2 country ceiling for foreign currency bonds was changed to positive, whilst the A1 country ceilings for local currency bonds and deposits were affirmed with a stable outlook. The sovereign rating actions primarily reflect Moody's recognition of the country's strong macroeconomic situation and favorable debt metrics as well as the likelihood of policy continuity under President Dmitry Medvedev (see separate press release for more details). The only Russian banks whose foreign currency deposit ratings were upgraded were those where these ratings were constrained by the country ceiling for foreign currency deposits. Specifically, the long-term foreign currency bank deposit ratings of the following banks were upgraded to Baa1: - Bank VTB - Bank VTB North-West - Bank VTB24 - DeltaCreditBank - Russian Agricultural Bank - Sberbank - Vnesheconombank - Gazprombank - Bank of Moscow - ZAO Raiffeisenbank For Bank VTB, Bank VTB North-West, Bank VTB 24, Russian Agricultural Bank, Sberbank, Vnesheconombank, Gazprombank and Bank of Moscow, the foreign currency deposit ratings remain constrained by the new Baa1 (positive outlook) ceiling for foreign currency deposits, and have a positive outlook, in line with the outlook on this ceiling. For the two other banks affected, DeltaCreditBank and ZAO Raiffeisenbank, these ratings are no longer constrained by the Baa1 ceiling, and have a stable outlook following the upgrade. In addition, the outlook on the A2 long-term senior unsecured foreign currency debt ratings of the following banks was changed to positive, following a similar rating action on Russia's A2 country ceiling for foreign currency bonds: - Bank VTB - Bank VTB 24 - Sberbank London Yaroslav Sovgyra VP - Senior Credit Officer Financial Institutions Group Moody's Investors Service Ltd. JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 London Reynold R. Leegerstee Managing Director Financial Institutions Group Moody's Investors Service Ltd. JOURNALISTS: 44 20 7772 5456 SUBSCRIBERS: 44 20 7772 5454 [2008-07-17]