Fitch improves ratings outlook on 27 Russian financial institutions

MOSCOW, Oct 21 (PRIME) -- International rating agency Fitch has improved its outlook on ratings of 27 Russian financial institutions, including state banks Sberbank and Vnesheconombank (VEB), to stable from negative, the agency said Friday.

The rating actions followed the recent revision of the outlook on Russia’s sovereign rating to stable from negative.

“The Long-Term IDRs of Sberbank, VEB, Russian Agricultural Bank, Gazprombank, Rosagroleasing and State Transport Leasing Company (STLC) are underpinned by potential government support. The revision of the outlooks on these entities reflects the reduced risk of a deterioration in the authorities’ ability to provide support,” Fitch said.

The revision of the outlook on National Clearing Centre reflects reduced pressure on its Viability Rating, which is closely linked to the Russian operating environment, Russia's sovereign debt rating and counterparty ratings of Russian banks, the agency said.

The revised outlooks on the Long-Term IDRs of AO Citibank, JSC Nordea Bank, Danske Bank (Russia), SEB Bank JSC, HSBC Bank (RR) LLC, ING Bank (Eurasia) JSC, Rosbank, DeltaCredit Bank, Rusfinance Bank, China Construction Bank (Limited) Russia, Bank of China (RUSSIA), Banca Intesa (Russia), AO UniCredit Bank and Credit Agricole CIB AO reflect the stabilization of Russia’s Country Ceiling of 'BBB-' following the change in the sovereign outlook.

The change in outlooks on the Long-Term IDRs of Sberbank Leasing, Sberbank Switzerland, JSC Subsidiary Bank Sberbank of Russia (Kazakhstan), Sberbank Europe AG, Gazprombank Switzerland and VEB Leasing reflects the reduced risk of a deterioration in their parents’ ability to support them. The ratings of these entities reflect their relative strategic importance to their parents and the track records of support, Fitch said.

End