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Moody's upgrades Russia-based Novikombank

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Moody's upgrades Russia-based Novikombank

Moody's on May 29 upgraded to B1 from B2 the long-term local- and foreign-currency deposit ratings of Russia-based JSCB Novikombank and revised the outlook to positive from developing.

The agency also upgraded the bank's baseline and adjusted baseline credit assessments to "b3" from "caa1" and long-term counterparty risk assessment to Ba3(cr) from B1(cr), while its Not Prime short-term local- and foreign-currency deposit ratings and Not Prime (cr) short-term counterparty risk assessment were affirmed.

Moody's said the upgraded deposit ratings and baseline credit assessment stemmed from a combination of recent corporate actions that improved the bank's solvency and liquidity metrics and the elimination of possible contagion risks related to the financial rehabilitation of JSC Fundservicebank, the bank's insolvent and unrated unit.

The revised outlook reflect the proactive approach of Novikombank's shareholders to address its remaining assets risks and the expectation that the ongoing robust performance and full profit retention will further boost the bank's solvency metrics, Moody's noted.

Russian Technologies State Corp. is the ultimate parent of Novikombank.