Fitch Rates Rusfinance Bank's RUB4bn BO-08 Bonds 'BBB+(EXP)'

Tue Jun 3, 2014 11:38am EDT

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(The following statement was released by the rating agency) MOSCOW, June 03 (Fitch) Fitch Ratings has assigned Rusfinance Bank's (RFB) upcoming RUB4bn BO-08 senior unsecured bonds an expected Long-term local currency rating of 'BBB+(EXP)' and an expected National Long-term rating of 'AAA(rus)(EXP)'. The assignment of the final ratings is contingent on the receipt of final documents conforming to information already reviewed. KEY RATING DRIVERS The bonds are rated in line with RFB's Long-term local currency Issuer Default Rating (IDR) and National Long-term rating. The bank's ratings are driven by potential support from its ultimate parent France's Societe Generale (SG, A/Negative; 99.4% stake in Rosbank (BBB+/Negative), a 100% parent of RFB) and is constrained by the Russian Country Ceiling of 'BBB+'. In Fitch's view, SG would have a strong propensity to support the bank, given its controlling stake and strategic commitment to the Russian market; the bank's still small size relative to the SG group, limiting the burden of any support required; and significant contagion/reputational risks for SG from RFB's potential default. RATING SENSITIVITIES Changes to RFB's Long-term local currency IDR and National Long-term rating would impact the issue's respective ratings. The bank's Long-term IDRs could be downgraded if Russia's Country Ceiling (BBB+) is downgraded. Downward pressure on the IDR and National Long-term rating could also arise if there is a multi-notch downgrade of SG or a marked reduction in the strategic importance of the Russian market for SG. The latter is currently not expected by Fitch. RFB's issuer ratings are as follows: Long-term foreign and local currency IDRs of 'BBB+', Negative Outlook National Long-term Rating of 'AAA(rus)', Stable Outlook Short-term foreign currency IDR of 'F2' Viability Rating of 'bb+' Support Rating of '2' Contacts: Primary Analyst Dmitri Vasiliev Director +7 495 956 5576 Fitch Ratings CIS Limited 26 Valovaya Street Moscow 115054 Secondary Analyst Alyona Plakhova Analyst +7 495 956 2409 Committee Chairperson James Watson Managing Director +7 495 956 6657 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 at www.fitchratings.com. Applicable criteria, "Global Financial Institutions Rating Criteria", dated 31 January 2014, are available at www.fitchratings.com. Applicable Criteria and Related Research: Global Financial Institutions Rating Criteria 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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