Moody's rates Sberbank Aaa.ru on national scale

Moody's Interfax Rating Agency said it has assigned an Aaa.ru national scale rating to Sberbank. Moody's said it affirmed the bank's existing global scale ratings, including the Baa2/Prime-2 foreign currency deposit ratings, A2 foreign currency debt rating of senior unsecured euronotes, A3 foreign currency debt rating of subordinated loan participation notes and its D- financial strength rating.

The outlook is stable.

The Baa2/Prime-2 deposit ratings are placed at Russia's country ceilings. The level of the ratings reflects the crucial role Sberbank plays in Russia's economy and banking system, especially in the retail deposit market, together with the bank's majority state ownership, the agencies said.

The rating is constrained by the bank's still evolving corporate governance, some decisions possibly influenced by political considerations, the country-wide branch network that limits any significant decrease in cost-to-income ratio, relatively high concentrations in the loan portfolio and the fact that the bank's dominant position in the retail deposit market is supported by government ownership, the agency said.

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