S & P downgraded the ratings of two dozen Russian banks – RBC

S & P downgraded the ratings of two dozen Russian banks – RBC

The international rating agency Standard & amp; Poor’s changed the outlook on the long-term rating on liabilities in foreign currency two dozen Russian banks, including note-bank Tatfondbank, “Uralsib”, Kraiinvestbank, “Alba Alliance” Bank “Development Capital” Zapsibkombank, Vneshprombank to “negative” from “stable”, Interfax reported on Tuesday, citing a press release from the agency.

In addition, the foreign currency rating of the bank “Russian Standard” has been reduced to “B” with a “stable” outlook to B + with a ‘negative “outlook. In addition, the foreign currency rating of Communication-bank was downgraded to BB- from BB, outlook maintained at “negative”. Long-term ratings of the bank “Renaissance Credit” were affirmed at B, the forecast – “negative”. Rating of the bank on a national scale has been reduced from ruA- to ruBBB +.

Ratings FC “Opening” and “Khanty-Mansiysk Bank Opening» BB- / ruAA- were placed on the list for review with “negative” outlook. Investtradebank ratings were lowered from B + / ruA to B / ruBBB + preserving “negative” forecast. Ratings of the bank “Petrocommerce» B + / ruA were placed on review for “developing” outlook.

In addition, foreign currency ratings Mezhtopenergobank and Ural Bank for Reconstruction and Development downgraded from B to B- with a “stable” outlook, and national scale rating – with ruBBB + to ruBBB. Finally, currency ratings Binbanka were affirmed at B with a “negative” outlook and removed from the list for review with “developing” outlook. Rating Bank natsshkale deteriorated from ruA- to ruBBB +.

These rating actions reflect the views of analysts S & amp; P, against the background of deteriorating state of the Russian economy risks in the banking sector increased, which could lead to an increase in banks’ losses on loans as well as the impact on their profitability and capitalization.

As previously reported, on Tuesday, another rating agency Moody’s lowered the ratings of seven major Russian financial institutions. Its decision analytics department explained the general situation in the country. Moody’s decision concerns Sberbank, VTB, Gazprombank, Russian Agricultural Bank, HMLA, Vnesheconombank and Alfa Bank.

Long-term ratings of Sberbank and VTB Bank in the national currency reduced from Baa3 to Ba1, in foreign currency – from Ba1 to Ba2. Long-term ratings of Gazprombank, Russian Agricultural Bank and Alpha Bank in national and foreign currencies dropped from Ba1 to Ba2. Long-term ratings of VEB and HMLA reduced from Baa3 to Ba1. As noted by Moody’s, the rating referred to financial institutions depends on the rating of the country, as they are supported by the Russian government. Further policy towards banks will thus depend on the sovereign credit rating of Russia. Moody’s stresses that the position of the banks affected by the deteriorating economic situation in the country. This leads to a decrease in the number of loans and deposits, which in the future may require additional measures of state support. The Agency considers it unlikely motion ranking up in the near future due to the general economic situation, however, Moody’s does not rule out the revision of the forecast from “negative” to “stable».

For four days earlier, on February 20, Moody’s downgraded Russia’s sovereign credit rating to Ba1 with a negative outlook. As reported in the official report of the agency to the rating Ba1, which is considered “junk” rating downgraded to Baa3.

The reasons for the downgrade Moody’s calls poor prospects of the Russian economy (the agency expects “deep recession” in 2015 and continued decline in 2016), suggests a further weakening of fiscal sustainability and foreign exchange reserves, and, finally, “unpredictable political dynamics.” Moody’s notes are still “very low, but growing” risk of government decisions that jeopardize the timely payment of external debt. The negative rating outlook Moody’s explains that the balance of economic, political and financial risks is not in favor of Russia. For example, the agency sees more likely that against Russia in the coming months will be imposed additional sanctions, rather than relaxed ones.