Amendment Fitch Upgrades Industry & Construction Bank on Sale to Vneshtorgbank
December 29, 2005
This announcement amends the version issued yesterday to clarify in the second paragraph the shareholding acquired by VTB.
Fitch Ratings has upgraded Industry & Construction Bank’s (“ICB”) ratings as follows: Long-term to ‘BBB-’ (BBB minus) from ‘B+’, Short-term to ‘F3’ from ‘B’, Support to ‘2’ from ‘4’. At the same time, Fitch has removed the Rating Watch Positive status from the Long-term and Support ratings and assigns a Stable Outlook. ICB’s Individual rating is affirmed at ‘D’.
This rating action follows the announcement that Russia’s Vneshtorgbank (“VTB”; affirmed at Long- and Short-term foreign currency ‘BBB’/‘F3’ respectively, Support ‘2’ and Individual ‘C/D’) has acquired a further 50% plus two shares in ICB, thus becoming the owner of a 75% plus three shares. Fitch believes VTB would have a strong propensity to support ICB but not - at least initially - to the extent that would warrant ICB’s Long-term rating being equalised with that of VTB.
ICB is the leading privately-owned bank in the North-west of Russia, with an extensive branch network, and also one of the top 10 banks in the country with total assets of USD4.1 billion, net loans of USD2.1bn and shareholders equity of USD0.4bn at end-H105.
Company — VTB Bank North-West
Full nameVTB Bank North-West