Fitch ups Russian banks to investment grade

Fitch Ratings said it upgraded the ratings of four Russian banks, of which three are to investment-grade, following the upgrade of Russia's long-term foreign currency rating to BBB- from BB+.

Savings Bank of the Russian Federation was upgraded to long-term BBB- with a stable outlook from BB+, short-term F3 from B, and changed support to 2 from 3. The individual rating is affirmed at C/D and $1 billion of Sberbank's rated securities are upgraded to BBB- from BB+.

Vnesheconombank is upgraded to long-term BBB- with a stable outlook from BB+, short-term F3 from B, and changed support to 2 from 3.

Vneshtorgbank is upgraded to long-term BBB- with a stable outlook from BB+, short-term F3 from B, and changed support to 2 from 3. The individual rating is affirmed at C/D and $1.625 billion of VTB's rated securities are upgraded to BBB- from BB+.

Moscow Narodny Bank Ltd.'s support rating changed to 2 from 3. The long-term rating is affirmed at BBB- with a stable outlook, the short-term at F3 and the individual at C.

Fitch comments that its view of the propensity of the Russian authorities to support these banks will continue to depend on the banks' status, ownership and importance to the Russian banking system.

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