Research Update: Russia-Based JSC VTB And Core Subsidiaries 'BBB/A-3' Ratings Affirmed On Bank Criteria Change; Outlook Stable Dec 11

Standard & Poors, December 2011

Abstract
Following a review under Standard & Poor's revised bank criteria (published Nov. 9, 2011), we have affirmed our 'BBB' long-term and 'A-3' short-term ratings and our 'ruAAA' Russia national scale ratings on JSC VTB Bank (VTB) and its core subsidiaries. Our ratings on state-owned VTB reflect the bank's very important role and very strong links to the government, anchor for a commercial bank operating only in Russia at 'bb', strong business position, moderate capital and earnings, moderate risk position, average funding, and adequate liquidity. The stable outlook reflects our expectations that the VTB group will maintain its estimated year-end 2011 capital adequacy over the medium term, and that the government will maintain majority ownership of VTB for the next several...

Companies mentioned in this report are:
- VTB Bank JSC
- TransCreditBank
- VTB Capital S.A.
- SME Bank
- Vnesheconombank
- GLOBEXBANK
- VTB-Leasing
- VTB-Leasing Finance
- VEB Finance PLC
- Sviaz-Bank

Action: Affirmed
Action: Outlook: Stable

Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.

Product Type: Research Update
Research updates complement media releases. They offer more depth and detail than summary analyses by incorporating all information published in the media release. They are more up to date than summaries in that they are published simultaneously with media releases.

- VTB Bank JSC
- TransCreditBank
- VTB Capital S.A.
- SME Bank
- Vnesheconombank
- GLOBEXBANK
- VTB-Leasing
- VTB-Leasing Finance
- VEB Finance PLC
- Sviaz-Bank

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