Fitch Ratings has upgraded the long-term rating of Moscow Narodny Bank (MNB) to BBB- from BB+ and changed the outlook for the long-term rating to stable from positive. MNB’s short-term rating has also been upgraded, to F3 from B. MNB’s individual rating of C and support rating of four are unchanged.
The rating actions follow Fitch’s recent upgrade of Russia’s long-term foreign-currency rating to BB+ from BB-. MNB’s long-term rating remains above that of Russia, reflecting ongoing improvement in the bank’s performance, its strong capitalisation and the benefits of its UK domicile and supervision by a strong regulator. The short-term, long-term and support ratings also take into account the demonstrated support of its majority owner, the Central Bank of Russia (CBR).
MNB is a fully licensed UK bank that is 90% owned by the CBR. It was incorporated as a British bank in 1919 and its primary business has been the financing of trade between the USSR and, later, the Russian Federation, and the rest of the world. The upturn in the Russian economy since late 1999 has enabled MNB to attract important new customers, operating in a number of Russia’s key economic sectors.