Fitch upgrades MTS Bank viability rating

Fitch Ratings said it affirmed MTS Bank's long-term issuer default rating at BB- and support rating at 3.

The outlook is negative.

The agency also said it upgraded MTS Bank's viability rating to B+ from B.

The ratings reflect a view that the bank would likely be supported, in case of need, by its shareholder, PJSC Mobile TeleSystems, Fitch said.

The bank is expected to have a strong propensity to support the bank given its majority ownership, which recently increased to 95% from 55%, the agency said.

The two-notch difference between the ratings of Mobile TeleSystems and MTS Bank reflects the subsidiary's limited franchise and strategic importance to the parent company, Fitch said.

The ratings also reflect the company's limited, but increasing integration with the parent and limited track record of profitable performance, the agency said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.