Moody’s Investors Service has upgraded Alfa-Bank’s Financial Strength Rating to D from D- and changed its outlook to stable from positive due to its reduced level of dependence on related parties for funding, as well as its reduced exposure to domestic funding sources by increasing its presence in the international capital markets. The agency stated that the upgrade of Alfa-Bank’s Financial Strength Rating also reflects its consistently strong financial performance and robust asset quality.
At the same time, Moody’s affirmed Alfa-Bank’s Ba2 long-term foreign currency deposit and senior unsecured debt ratings. Taking into account a change in Moody’s approach to its consideration of shareholder support, the ratings amount to the equivalent of a single notch upgrade from Ba3 to Ba2. Under the revised approach, the long-term foreign currency deposit and senior unsecured debt ratings reflect Alfa-Bank’s intrinsic strength only.
Alfa-Bank believes that upon incorporation of Joint-Default Analysis into Moody’s rating methodologies, shareholder support will be fully factored in along with other types of external support into ratings, and as a result the Bank’s deposit and debt ratings might see upward pressure.
For more information, please contact: Alfa-Bank Investor Relations
Elena Ershova
Director for Investor Relations
