Moody’s Investors Service places Vozrozhdenie Bank’s deposit ratings on review for upgrade

12 January 2018

Moody’s Investors Service has today placed on review for upgrade V.Bank’s long-term local and foreign-currency deposit ratings of B1 and Counterparty Risk Assessment of Ba3. This follows the announcement of the bank’s planned merger with Promsvyazbank.

Moody’s Investors Service has today placed on review for upgrade V.Bank’s long-term local and foreign-currency deposit ratings of B1 and Counterparty Risk Assessment of Ba3. This follows the announcement of the bank’s planned merger with Promsvyazbank.

“Vozrozhdenie Bank’s baseline credit assessment is underpinned by its healthy pre-provision earnings with a high share of stable commission income, a granular deposits base with limited reliance on market funding, gradually improving asset quality and sustained, stable capital adequacy,” noted Maria Malyukova, Assistant Vice President — Analyst at Moody’s Investors Service.

“Despite volatile situation in the financial market, the bank’s performance and the expected merger allowed Moody’s Investors Service to keep the ratings unchanged and place them on review for upgrade. The strategy behind our longstanding work in the banking sector today helps us to maintain our key strengths — reliable funding base, stable liquidity position and durable relations with retail and SME clients in the bank’s core regions,” commented Acting Chairman of the Management Board Mark Nakhmanovich.

Rating agency’s experts believe that the planned merger with Promsvyazbank, a systemically important bank, will have positive effect on V.Bank’s deposit ratings. The two banks have been working in close cooperation since 2015, when Promsvyaz Capital B.V. became a major shareholder of Vozrozhdenie Bank. The General shareholder meeting will consider the planned merger on October 26, 2017.

S&P Global Ratings keep Vozrozhdenie Bank’s ratings at “ВВ- / B”