Moody's ups Bank St. Petersburg view to positive

Moody's Investors Service said it changed the outlook on Bank St. Petersburg's B1 long-term foreign currency deposit rating and E+ financial strength rating to positive from stable.

The outlook on the bank's Not-Prime short-term deposit rating remains unchanged at stable.

According to Moody's, the outlook change reflects the entry of committed strategic shareholders with a 30% stake in 2005 and associated changes to the supervisory board, which should better facilitate the bank's future institutional development; the bank's strengthening positions in its home market; good financial fundamentals uncompromised by the very rapid pace of growth and the bank's eventual disposal of its investment in a protracted hotel construction project that in the past diverted considerable management attention from core activities.

However, Moody's noted that Bank St. Petersburg's loan portfolio, in addition to the rapid pace of growth, continues to display high single-name and sectoral concentrations.

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