URSA Bank’s Rating Outlooks promoted

10 December 2008 (10:44)

Fitch и Moody's report URSA Bank’s Rating Outlooks have been promoted due to the stockholders’ decision to unite in a holding with MDM-Bank, the bank’s press officer reports.

Fitch affirmed the bank’s short-term Issuer Default Rating at B+ and gave it a Rating Watch Positive. The agency reports the proposed merger will enable the two banks to build up on their strengths in the business and retail market segments as well as to open up a whole range of brand new advantages through expanded customer base, greater size, and more pronounced risk diversification.

Moody's has also affirmed URSA Bank’s rating at the current Ba3 level and changed its Rating Outlook from Stable to Positive. The agency believes the transaction between URSA Bank and MDM Bank will result in lower risks for the former thanks to greater emphasis on the business customer segment (the latter’s core activity).

The bank that is to emerge out of URSA Bank and MDM-Bank’s merger is going to be Russia’s ninth largest as well as Russia’s second largest privately owned bank in terms of assets. Then, it will be the country’s sixth largest bank and the second largest privately owned bank in terms of capital and Russia’s ninth largest and third largest privately owned bank in terms of private individuals’ deposit volume (with data available for up to September 2008). The new bank’s greater size is expected to enhance its business customer attractiveness and improve its chances of getting the state funding provided for only a few private banks.

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