The agency also assigned an ruAA+ Russia national scale rating to the bank, a subsidiary of Vneshtorgbank (VTB). The outlook on the ratings is stable.
S&P said, "The ratings on VTB24 reflect its core group status within Vneshtorgbank... and its good growth potential on the domestic retail market."
S&P credit analyst Eugene Tarzimanov said, "The ratings are also supported by the bank's improving business and financial profile. These positive factors are constrained by the bank's weak profitability; challenges of ongoing business transformation; and funding dependence on its parent."
State-owned VTB is one of Russia's largest banks, with assets of $36.7 billion
The agency said the stable outlook on VTB24 is based on the expectation that VTB will remain its majority owner.
However, "The ratings on the bank could be lowered if its ties to VTB weaken significantly. Any material deterioration in the bank's stand-alone profile would put downward pressure on the ratings and constrain the potential for an upgrade," Tarzimanov said.
