Moody's upgrades AK Bars Bank

Moody's Investors Service said it upgraded AK Bars Bank's long-term local- and foreign-currency debt ratings to B1 from B2 following a review of its financial statements for the first half of 2013. The outlook is stable.

The agency said the upgrade reflects AK Bars Bank's decrease in non-core banking assets that, in turn, eased pressure on capitalization.

AK Bars Bank's ratings are still being constrained by still moderate capitalization, volatile profitability with high share of non-recurring revenues, market risk and related-party exposures, Moody's said.

At the same time, the bank's credit strength is underpinned by its strong commercial franchise in the Republic of Tatarstan and its adequate branch network coverage in the region, the agency added.

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