Moody’s ups Khanty-Mansiysk to Ba3

Moody's Investors Service said it upgraded Khanty-Mansiysk Bank Otkritie PJSC's long-term foreign and local-currency deposit ratings to Ba3 from B2, in line with that of the parent – Bank Otkritie Financial Corp. PJSC, following Khanty-Mansiysk’s reorganization and merger with Bank Otkritie.

Khanty-Mansiysk’s short-term deposit ratings were affirmed at Not-Prime.

The agency will then withdraw the following of Khanty-Mansiysk’s ratings: Long-term deposit ratings of Ba3; short-term deposit ratings of Not-Prime; as well as the CR assessments of B1(cr)/Not-Prime (cr), baseline credit assessment (BCA) of b3 and adjusted BCA of b2, as the bank ceased to exist as a legal entity following the merger with Bank Otkritie on Aug. 22.

Concurrently, Moody's affirmed subordinated debt rating of Caa1(hyb) assigned to the non-viability subordinated debt of Khanty-Mansiysk issued in the form of $200 million 10% perpetual loan participation notes that are subject to contractual loss absorption upon the breach of a predefined trigger and/or the start of the bank's financial rehabilitation. These notes are Basel-III-compliant debt instruments, which qualify as regulatory additional Tier 1 capital.

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