Moody’s changes two Russian banks to stable

Moody's Investors Service said it changed the outlook on the long-term debt and deposit ratings of AO Raiffeisenbank and Bank Saint-Petersburg PJSC to stable from negative and affirmed the long-term and short-term debt and deposit ratings.

The action reflects the agency’s view that these two banks are relatively resilient to current pressures stemming from the challenging operating environment in Russia.

The standalone baseline credit assessment, adjusted baseline credit assessment and counterparty risk (CR) assessments were affirmed.

Moody's said the outlook change on Raiffeisenbank was driven by its view that the bank's solvency metrics are relatively resilient to credit challenges. In particular, the agency considers that the bank benefits from (a) robust pre-provision income sufficient to absorb likely credit costs; and (b) an adequate capital cushion.

The change on Bank Saint-Petersburg was prompted by: (a) robust profitability throughout 2015; and (b) signs of stabilization in the bank's credit costs, the agency said.

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