S&P lifts VEB-leasing

Standard & Poor's said it raised the short-term foreign-currency counterparty credit rating on VEB-leasing OJSC to A-2 from A-3.

The agency also affirmed the long-term BBB foreign-currency and BBB+ local-currency ratings on the company.

The outlook is stable.

The upgrade follows similar rating action on VEB-leasing's parent, Vnesheconombank, S&P said.

Those actions followed a similar action on the Russian Federation as a result of the revision of the criteria on the linkage between the long-term and short-term ratings on sovereigns, the agency said.

VEB-leasing holds a strong market position in big-ticket leasing deals in Russia and generates good profitability, although it is sensitive to negative market trends, S&P said.

It has a critical role in the Russian economy and there is almost certain likelihood that the Russian government would provide timely and sufficient extraordinary support in the event of financial distress, the agency said.

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