Fitch lifts MTS Bank view to positive

Fitch Ratings said it revised the outlook on OJSC MTS Bank's long-term issuer default rating to positive from stable and affirmed the issuer default rating at B+.

The outlook revision reflects a similar outlook revision on Sistema JSFC, MTS Bank's controlling shareholder, the agency said.

Fitch also affirmed the bank's long-term issuer default rating at B+, short-term issuer default rating at B, national long-term rating at A-(rus), viability rating at B- and an A-(rus) rating on its senior unsecured debt.

The ratings factor in the likelihood of support the bank may receive, if needed, from its major owner, Sistema, or its subsidiaries, the agency said.

Sistema's propensity to provide support is likely to be high, given its track record of previous capital support, Fitch said.

The one-notch difference between the ratings of Sistema and MTS Bank reflects the bank's weak performance to date and its limited strategic importance and synergy within the group, the agency added.

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