Fitch Receives Additional Assurances from VTB on Support for Georgian Subsidiary
August 13, 2008
Fitch Ratings-London/Moscow-12 August 2008: Fitch Ratings today says it has received renewed assurances from Russia's JSC Bank VTB (VTB, 'BBB+'/Stable Outlook) of its intention to support its Georgian subsidiary, JSC VTB Bank (Georgia) (VTBG, 'B+'/ Negative Outlook), in case of need. This follows Fitch's downgrade yesterday of four Georgian banks (see announcement on www.fitchresearch.com) as a result of the downgrade on Friday of Georgia's sovereign rating.
Fitch has also been informed that VTB has no intention to sell VTBG or to revise its strategy or operations on the Georgian market. Fitch's view of VTB's likely strong propensity to provide support to VTBG is reflected in the latter's Long-term IDR remaining at the same level as the Georgian Country Ceiling of 'B+'.
At the same time, Fitch notes that the ability of VTBG, like that of other foreign-owned banks in Georgia, to receive and utilise support from foreign shareholders could be constrained by Georgia's transfer and convertibility risks, as captured by the Country Ceiling.
Company — VTB Bank Georgia
Full nameAO "VTB Bank Georgia"