S&P boosts Rosbank

Standard & Poor's said it raised its long-term counterparty credit and certificate of deposit ratings on Rosbank OJSC to B from B- and its Russia national-scale rating to A-(ru) from BBB-(ru).

At the same time, the short-term C rating was affirmed.

The outlook is stable.

S&P said the rating upgrade reflects Rosbank's improved capitalization following the recent Tier 1 capital increase, completed legal and organizational integration of the OVK banking group and expectations of higher sustained core profitability in the medium term.

The ratings remain constrained by Rosbank's sizable concentration in loans and funding, low operating efficiency, challenges in managing an extensive distribution network, untested quality of the fast-growing retail portfolio and Russia's high operating risks, S&P added.

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