(The following statement was released by the rating agency)
Dec 10 - Fitch Ratings has maintained CJSC Denizbank Moscow’s (DM) Long-term Issuer Default Rating (IDR) of ‘BBB-’ on Rating Watch Evolving (RWE). A full list of rating actions is at the end of this commentary.
The rating actions reflect the continued uncertainty about the bank’s role in the broader group of Sberbank of Russia (‘BBB’/Stable), following the acquisition of DM’s direct parent, Turkey’s Denizbank (‘BBB-'/Stable) by Sberbank (see Fitch’s previous announcements ‘Fitch Puts Denizbank Russia on RWE; Dexia Group, Sberbank & Denizbank Unaffected’ dated 28 May 2012 and ‘Fitch Affirms Denizbank at ‘BBB-'; Maintains Russian Subsidiary on RWE’ dated 2 October 2012 at www.fitchratings.com.
The RWE on DM’s ratings will be resolved upon Sberbank’s clarification of its intentions regarding DM. The ratings could be downgraded, potentially by several notches, should the new shareholder intend to sell the bank. Conversely, the Long-term IDRs could be upgraded by one notch, to the level of Sberbank, in case of a merger, or closer integration, with the latter. In Fitch’s view, it is possible that clarification of DM’s role within the Sberbank group, and any sale or merger involving the bank, may not take place in the near term.
DM is a small 100%-owned Russian subsidiary of Denizbank, with total assets comprising slightly more than 1% of the Turkish parent’s balance sheet. Being closely integrated with Denizbank, DM focuses on servicing Turkish businesses in Russia, and most borrowers are also clients of Denizbank.
The rating actions are as follows:
Long-term foreign and local currency IDRs: ‘BBB-'; maintained on RWE
Short-term foreign and local currency IDRs: ‘F3’; maintained on RWN
National Long-term rating: ‘AA+(rus)'; maintained on RWE
Support Rating: ‘2’; maintained on RWN