Fitch assigns Bank of Moscow 'BBB' LC IDR; rates BO-1 bonds 'BBB'
MOSCOW. Feb 6 (Interfax) - Fitch Ratings has assigned Russia-based Bank of Moscow (BOM; 'BBB'/Negative) a Long-term local currency Issuer Default Rating (IDR) of 'BBB' with a Negative Outlook, the agency said in a press release.
Fitch has also assigned BOM's RUB10bn bond issue BO-1, due 28 January 2016, a Long-term rating of 'BBB' and National Rating of 'AAA(rus)', and registered issues of senior unsecured bonds series BO-2, BO-3, BO-4, BO-5, BO-6, BO-7 expected Long-term ratings of 'BBB(EXP)' and expected National ratings of 'AAA(rus)(EXP)'.
BOM's local currency IDR is equalised with those of its parent JSC VTB Bank (VTB; 'BBB'/Negative), reflecting VTB's 95.5% ownership, the high integration between parent and subsidiary and the track record of support. BOM's support-driven ratings will likely remain aligned with VTB's.
The series BO-1 bonds have an 8.05% coupon, payable on a quarterly basis. BOM's obligations under the notes will rank equally with the claims on existing senior unsecured debt. The proceeds will be used to finance BOM's core business.
BoM's other ratings are as follows:
Long-term foreign currency IDR: 'BBB'; Negative Outlook
Short-term IDR: 'F3'
Support Rating: '2'
National Long-term Rating: 'AAA(rus)', Negative Outlook
Viability Rating: 'bb-'