Moody's upgrades 12 Russian banks

Moody's Investors Service said it upgraded the local- and foreign-currency long-term bank deposits, issuer and senior unsecured debt ratings of 12 financial institutions in Russia.

The upgrades follow a similar upgrade of Russia's sovereign debt rating to Baa3 from Ba1, Moody's said.

The affected banks include Alfa-Bank, AO Raiffeisenbank, Bank VTB PJSC, DeltaCredit Bank, Eximbank of Russia, Gazprombank, JSC DOM.RF, PJSC Rosbank, Rusfinance Bank, Russian Agricultural Bank, Sberbank and VEB.RF.

The outlooks on all of the banks also were changed to stable from positive.

Moody's said the macro profile for Russia remains unchanged at "weak(+)" and the banks' baseline credit assessments and adjusted baseline credit assessments also were unaffected, Moody's said.

The agency also said it upgraded the senior unsecured and subordinated debts, issuer and local currency deposit ratings of six banks, including Sberbank, Bank VTB PJSC, VEB.RF, JSC DOM.RF, Russian Agricultural Bank and Gazprombank.

The agency said it considers that these entities benefit from the enhanced creditworthiness of Russian government given their systemic importance, state ownership and role in discharging public policy, which makes government support for the affected liabilities very likely.

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