S&P upgrades West Siberian Commercial

S&P said it raised the long-term rating on West Siberian Commercial Bank to BB+ from B+.

The outlook is positive.

The agency also said it affirmed the short-term rating at B.

S&P said it removed the long-term rating from CreditWatch with positive implications, where it was placed in November.

VTB Bank JSC acquired 71.8% of common shares of West Siberian Commercial.

The agency said it understands that VTB Bank will shortly extend a mandatory offer to buy out the remaining shares from the minority shareholders.

The group plans to start integrating the bank's operations into VTB retail business this year and West Siberian will eventually cease to exist as a separate legal entity by May 2020, S&P explained.

The positive outlook reflects the potential of strengthened parental support for West Siberian once the merger is completed, the agency said.

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