MOSCOW, November 28 (RIA Novosti) - Moody's has upgraded Sberbank's [RTS: SBER] financial stability rating from D- to D, with a stable outlook, the international rating agency said Tuesday.
Moody's said in a news release that other ratings on Russia's largest bank have been affirmed, including its Baa2/Prime-2 foreign-currency long-term and short-term deposit ratings, and its A2 ratings for senior and subordinated debt issued under foreign law.
The agency also affirmed Sberbank's national scale rating at Aaa.ru.
According to Moody's, the upgrade reflects Sberbank's track record of solid financial performance and improved efficiency of operations, as reported under International Financial Reporting Standards in 2005-2006.
"The bank's conservative funding profile and manageable asset quality have also supported the rating action," Moody's said.
The agency said Sberbank's increased focus on the lucrative business segment of retail lending, in which it currently holds 44.1% of the Russia's market, has been a major contributor to the bank's relatively wide net interest margins over the last two years.
The state-controlled retail savings bank recently announced plans for a substantial capital increase through a public placement of shares in the first quarter of 2007.
Sberbank is 60.57% controlled by the Central Bank. Its equity as of August 1, 2006 stood at 311.8 billion rubles ($11.5 billion).
