URSA Bank and MDM Bank’s ratings keep rising

5 February 2009 (16:34)

Standard & Poor's, the international rating agency, affirmed MDM Bank’s corporate governance rating at 6+ and promoted its rating on the Russian scale up to 6,9, Independent Information Agency reports.

MDM Bank’s ratings have thus been signed off the GovernanceWatch list, with Developing Rating Outlook. As a matter of fact, the bank’s ratings had to be reconsidered on December 4, 2008 because of its merging with URSA Bank.

In the meantime, URSA Bank’s ratings were also promoted in December 2008. Fitch affirmed the bank’s short-term Issuer Default Rating at B+ and put it on Rating Watch Positive. The agency feels the prospective merger will enable the two banks to unite their strengths on the business customers and retail markets and will result in a whole range of other benefits due to greater customer base, larger size, and more significant risk diversification.

In addition, Moody’s also confirmed URSA Bank’s rating at the current level of Ba3 and changed its Rating Outlook from Stable to Positive.

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