Moody’s Investor Service upgraded its foreign currency ratings to Industry and Construction Bank. The bank’s foreign currency deposit rating was upgraded from Ba1/NP to Baa2/Prime-2, which is the country’s ceiling. ICB’s senior unsecured and subordinated foreign currency debt ratings were also changed from Ba1 to A3 and from Ba2 to Baa1, respectively. The bank’s financial strength rating remained unchanged at D-. The outlook for the bank’s deposit ratings is stable, while the outlook for senior and subordinated debt ratings is positive. At the same time, Moody’s Interfax upgraded ICB’s long-term national scale credit rating from Aa1.ru to Aaa.ru. This reflects the recent transfer of ICB’s 75%+3 shares to Vneshtorgbank, which Moody’s views as an increase of potential support. The positive outlook on ICB’s senior unsecured and subordinated foreign currency debt ratings is based on Moody’s expectation that ICB will be fully absorbed by VTB, ceasing to exist as a legal entity.
