According to senior RusRating analyst Victoria Belozerova, the change in outlook (from stable to positive) reflects the initiation of a merger process between Rosbank and other SocGen subsidiaries in Russia. 

Positive factors include the support of the SocGen group, a solid and well-developed presence in virtually all segments of the banking market, a stable client base that includes several major companies, and access to federal government backing in the form of credit resources. Constraining factors include growing credit risks and current operating losses.

About the Bank:

Rosbank is a major universal bank controlled by France’s Societe Generale group; Vladimir Potanin, a leading Russian businessman and principal shareholder in the multi-sector InterRos group, holds a less than a blocking interest after a stake of close to 20% passed to state-owned Bank VTB in late 2008 in the form of collateral. Rosbank operates one of the country’s largest branch networks and is present in virtually all market segments: an active provider of loans and other services for corporate clients, it is also a leader in retail and a significant player in the market for investment banking services.

ZAO RusRating is an independent rating agency accredited by the National Securities Market Association whose ratings are used by the Central Bank of Russia to assess creditworthiness. The company was set up in 2001 and is a member of the GlobalRating group, which also includes rating agencies in Kazakhstan (KzRating), Armenia (AmRating) and Azerbaijan (AzeriRating). Its primary services are the provision of credit ratings to banks, leasing and industrial companies, and bonds, along with analysis of various aspects of the Russian financial sector.