Moody's on Feb. 20 placed on review for upgrade Otkritie Financial Corp. Bank's B2 long-term foreign- and local-currency bank deposit ratings, as well as its senior unsecured debt ratings and B1(cr) long-term counterparty risk assessment.

The rating agency also upgraded the Russian lender's baseline credit assessment and adjusted baseline credit assessment to "caa3" from "ca" and placed the ratings on review for further upgrade.

Additionally, Moody's affirmed Otkritie Bank's Not Prime short-term bank deposit rating and Not Prime(cr) short-term counterparty risk assessment.

The rating action is based on the Russian bank's improved financial metrics following its recent asset writedowns and recapitalization, along with the stabilization of its customer deposits. The upgrade of the baseline credit assessment and adjusted baseline credit assessment reflect the lender's improved liquidity, supported by short-term funding from the Russian central bank.

Moody's noted it will conclude the review for upgrade on Otkritie Bank once it has further clarity on the recapitalization of its subsidiary National Bank Trust PJSC and the repayment schedule of the interbank loan to the unit from the parent.