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Research Update: VTB Bank Downgraded To 'BB+' From 'BBB-'; VTB Capital Downgraded To 'BB' From 'BB+', On Watch Neg, Then Suspended

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Research Update: VTB Bank Downgraded To 'BB+' From 'BBB-'; VTB Capital Downgraded To 'BB' From 'BB+', On Watch Neg, Then Suspended

Rating Action

On Feb. 28, 2022, S&P Global Ratings lowered its long- and short-term issuer credit ratings on VTB to 'BB+/B' from 'BBB-/A-3. We also placed the ratings on CreditWatch with negative implications. In addition, we lowered to 'BB+' from 'BBB-' our rating on the bank's U.S.-denominated senior unsecured debt as well as placed our 'B' rating CreditWatch negative on VTB's subordinated debt. We then suspended the ratings.

As well, we lowered our long-term rating on London-based VTB Capital PLC to 'BB' from 'BB+', placed the ratings on CreditWatch negative, and suspended them.

Rationale

The Office of Foreign Assets Control's (OFAC's) inclusion of VTB Bank and VTB Capital in its Specially Designated Nationals and Blocked Persons list, could materially affect the entities' operations and financial risk profile. We suspended our ratings on VTB Bank and VTB Capital following the inclusion on the list. We will consider the suspension status and might reinstate the ratings if the OFAC sanctions are lifted, all else being equal.

Related Criteria

Ratings List

Downgraded; CreditWatch
To From

VTB Bank JSC

Issuer Credit Rating BB+/Watch Neg/B BBB-/Stable/A-3

VTB Capital S.A.

Senior Unsecured BB+/Watch Neg BBB-
Downgraded; CreditWatch Action; Ratings Affirmed

VTB Bank JSC

Senior Unsecured BB+/Watch Neg BB+
Subordinated B/Watch Neg B
VTB Capital PLC
Issuer Credit Rating BB/Watch Neg/B BB+/Stable/B

VTB Capital S.A.

Subordinated B/Watch Neg B
Not Rated Action
To From

VTB Bank JSC

Issuer Credit Rating NR BB+/Watch Neg/B
Senior Unsecured NR BB+/Watch Neg
Subordinated NR B/Watch Neg
VTB Capital PLC
Issuer Credit Rating NR BB/Watch Neg/B

VTB Capital S.A.

Subordinated NR B/Watch Neg

Certain terms used in this report, particularly certain adjectives used to express our view on rating relevant factors, have specific meanings ascribed to them in our criteria, and should therefore be read in conjunction with such criteria. Please see Ratings Criteria at www.standardandpoors.com for further information. A description of each of S&P Global Ratings' rating categories is contained in "S&P Global Ratings Definitions" at https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352 Complete ratings information is available to subscribers of RatingsDirect at www.capitaliq.com. All ratings affected by this rating action can be found on S&P Global Ratings' public website at www.standardandpoors.com. Use the Ratings search box located in the left column. Alternatively, call one of the following S&P Global Ratings numbers: Client Support Europe (44) 20-7176-7176; London Press Office (44) 20-7176-3605; Paris (33) 1-4420-6708; Frankfurt (49) 69-33-999-225; or Stockholm (46) 8-440-5914

Analytical Group Contact:Financial Institutions EMEA;
Financial_Institutions_EMEA_Mailbox@spglobal.com

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