Fitch Affirms VTB and 3 Subsidiaries; Withdraws Ratings

Fri Jan 31, 2014 2:16pm EST

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(The following statement was released by the rating agency) MOSCOW, January 31 (Fitch) Fitch Ratings has affirmed and withdrawn the ratings of Russia’s JSC VTB Bank (VTB) and three of its subsidiaries, CJSC Bank VTB24 (VTB24), Bank of Moscow (BOM) and VTB Leasing (VTBL), including their Long-term Issuer Default Ratings (IDRs) of 'BBB-' with Stable Outlooks. KEY RATING DRIVERS Fitch has withdrawn the ratings of VTB24, BOM and VTBL as the issuers have chosen to stop participating in the rating process. At the same time, Fitch has decided to withdraw the ratings of VTB, which are uncompensated. Accordingly, Fitch will no longer provide ratings coverage for the four entities. Fitch downgraded the Long-term IDRs of VTB, VTB24, BoM and VTBL to ‘BBB-’ from ‘BBB’ on 10 January 2014, reflecting the agency’s view of a marginally lower probability of government support for VTB than previously (see ‘Fitch Downgrades VTB to 'BBB-'; Affirms Sberbank and VEB at 'BBB' on www.fitchratings.com). The following ratings have been affirmed and withdrawn: VTB: Long-term foreign and local currency IDRs: 'BBB-'; Stable Outlooks Short-term foreign currency IDR: 'F3' Support Rating: '2' Support Rating Floor: 'BBB-' National Long-term Rating: 'AA+(rus)'; Stable Outlook Senior unsecured debt (including that issued by VTB Capital SA) long-term ratings: 'BBB-' Senior unsecured debt short-term rating: 'F3' Senior unsecured debt National long-term rating: 'AA+(rus)' Subordinated debt issued by VTB Capital SA: 'BB+' VTB24: Long-term foreign currency IDR: 'BBB-'; Stable Outlook Short-term foreign currency IDR: 'F3' Support Rating: '2' National Long-term Rating: 'AA+(rus)'; Stable Outlook Senior unsecured debt long-term rating: 'BBB-' Senior unsecured debt short-term rating: 'F3' Viability Rating: 'bb' BoM: Long-term foreign and local currency IDRs: 'BBB-'; Stable Outlooks Short-term foreign currency IDR: 'F3' Support Rating: '2' National Long-term Rating: 'AA+(rus)'; Stable Outlook Senior unsecured debt (including that issued by BOM Capital PLC) long-term rating: 'BBB-' and 'BBB-(EXP)' Senior unsecured debt National long-term rating: 'AA+(rus)' and 'AA+(rus)(EXP)' Subordinated debt, issued by Kuznetski Capital S.A., long-term rating: 'BB+' Viability Rating: 'bb-' VTB Leasing Long-term foreign and local currency IDRs: 'BBB-'; Stable Outlooks Short-term foreign and local currency IDRs: 'F3' National Long-term Rating: 'AA+(rus)', Stable Outlook Support Rating: '2' Senior unsecured debt (including that issued by VTB-Leasing Finance) long-term Rating: 'BBB-' Contacts: Primary Analysts Alexander Danilov (VTB, BoM) Senior Director +7 495 956 24 08 Fitch Ratings Moscow Valovaya Str, 26 Moscow Dmitry Vasiliev (VTB24) Associate Director +7 495 956 55 76 Anton Lopatin (VTBL) Associate Director +7 495 956 70 96 Secondary Analysts Dmitry Vasiliev (VTB) Associate Director +7 495 956 55 76 Anton Lopatin (BoM) Associate Director +7 495 956 70 96 Konstantin Yakimovich (VTB24) Analyst +7 495 956 99 78 Aslan Tavitov (VTBL) Associate Director +7 495 956 70 65 Committee Chairperson James Watson Managing Director +7 495 956 66 57 Media Relations: Julia Belskaya von Tell, Moscow, Tel: +7 495 956 9908, Email: julia.belskayavontell@fitchratings.com; Hannah Huntly, London, Tel: +44 20 3530 1153, Email: hannah.huntly@fitchratings.com. Additional information is available on www.fitchratings.com. Applicable criteria, "Global Financial Institutions Rating Criteria", dated 15 August 2012, National Ratings Criteria, dated 19 January 2011, Assessing and Rating Bank Subordinated and Hybrid Securities, dated 5 December 2012, Rating FI Subsidiaries and Holding Companies, dated 10 August 2012 are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria here National Scale Ratings Criteria here Assessing and Rating Bank Subordinated and Hybrid Securities here Rating FI Subsidiaries and Holding Companies here Additional Disclosure Solicitation Status here ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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