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Russian Banks Downgraded To 'CCC-/C'; Ratings Put On CreditWatch Negative

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Russian Banks Downgraded To 'CCC-/C'; Ratings Put On CreditWatch Negative

NEW YORK (S&P Global Ratings) March 7, 2022--S&P Global Ratings said today that, following its downgrade of Russia on March 3, 2022, it has lowered its long- and short-term issuer credit ratings on Russian financial institutions, their related companies, and their debt issues to 'CCC-/C' and placed them on CreditWatch with negative implications (see the ratings list).

The downgrade of the banks follows the lowering of our foreign currency sovereign credit ratings on Russia to 'CCC-/C' from 'BB+/B' and the local currency ratings to 'CCC-/C' from 'BBB-/A-3'; all sovereign ratings remain on CreditWatch negative. We also revised downward our transfer and convertibility assessment on Russia to 'CCC-' from 'BBB-' (see "Russia Ratings Lowered To 'CCC-' And Kept On CreditWatch Negative On Increasing Risk Of Default," published March 3, 2022, on RatingsDirect).

The downgrade follows the imposition of measures that we believe will likely substantially increase the risk of financial institutions' default. To mitigate the resulting high exchange rate and financial market volatility, and to preserve remaining foreign currency buffers, Russia's authorities have--among other steps--introduced capital-control measures that we understand could constrain banks from honoring their obligations in full and on time. More severe G-7 government sanctions and other restrictions were imposed on Russia in response to its accelerated military actions in Ukraine.

CreditWatch

The ratings remain on CreditWatch negative to indicate that we could lower them further over the next few weeks. We expect to resolve the CreditWatch placement once we have more clarity on the technical ability and/or willingness of financial institutions to honor their obligations in full and on time.

Related Criteria

Related Research

Ratings List

* * * * * * * * * * * * * * ABH Financial Ltd. * * * * * * * * * * * * * *
Downgraded
To From

ABH Financial Ltd.

Issuer Credit Rating CCC-/Watch Neg/C BB-/Watch Neg/B

Alfa-Bank JSC

Issuer Credit Rating CCC-/Watch Neg/C BB+/Watch Neg/B

ABH Financial Ltd.

Senior Unsecured CCC-/Watch Neg BB-/Watch Neg

Alfa Holding Issuance PLC

Senior Unsecured CCC-/Watch Neg BB-/Watch Neg
Downgraded; CreditWatch Action
To From

Alfa-Bank JSC

Commercial Paper C/Watch Neg B
* * * * * * * * * * * * CB Renaissance Credit LLC * * * * * * * * * * * *
Downgraded
To From

CB Renaissance Credit LLC

Issuer Credit Rating CCC-/Watch Neg/C B+/Watch Neg/B
* * * * * * * * * * * * * CentroCredit Bank JSC * * * * * * * * * * * * *
Downgraded; CreditWatch Action
To From

CentroCredit Bank JSC

Issuer Credit Rating CCC-/Watch Neg/C B+/Watch Neg/B
* * * * * * * * * * * * * * Concern Rossium LLC * * * * * * * * * * * * *
Downgraded
To From

Concern Rossium LLC

Issuer Credit Rating CCC-/Watch Neg/C B+/Watch Neg/B

Credit Bank of Moscow

Issuer Credit Rating CCC-/Watch Neg/C BB/Watch Neg/B

CBOM Finance PLC

Senior Unsecured CCC-/Watch Neg BB/Watch Neg
* * * * * * * * * * * * * * * Gazprombank JSC * * * * * * * * * * * * * *
Downgraded
To From

Bank GPB International S.A.

Gazprombank JSC

Gazprombank (Switzerland) Ltd.

Issuer Credit Rating CCC-/Watch Neg/C BB+/Watch Neg/B

Gazprombank JSC

Senior Unsecured CCC-/Watch Neg BB+/Watch Neg
Downgraded; CreditWatch Action
To From

GPB Finance PLC

Commercial Paper C/Watch Neg B
* * * * * * * * * * * * Bank SOYUZ * * * * * * * * * * * *
Downgraded
To From

Bank SOYUZ

Issuer Credit Rating CCC-/Watch Neg/C BB-/Watch Neg/B
* * * * * * * * * * * * * * * * RN Bank JSC * * * * * * * * * * * * * * *
Downgraded
To From

RN Bank JSC

Issuer Credit Rating CCC-/Watch Neg/C BB+/Watch Neg/B
* * * * * * * * * * * Raiffeisenbank AO * * * * * * * * * *
Downgraded
To From

Raiffeisenbank AO

Issuer Credit Rating CCC-/Watch Neg/C BB+/Watch Neg/B
* * * * * * * * * * * * Russian Standard Bank JSC * * * * * * * * * * * *
Downgraded
To From

Russian Standard Bank JSC

Issuer Credit Rating CCC-/Watch Neg/C B/Watch Neg/B
* * * * * * * * * * * * * * * UniCredit Bank AO * * * * * * * * * * * * * * *
Downgraded
To From

UniCredit Bank AO

Issuer Credit Rating CCC-/Watch Neg/C BB+/Watch Neg/B
* * * * * * * * Ural Bank for Reconstruction and Development * * * * * * *
Downgraded
To From

Ural Bank for Reconstruction and Development

Issuer Credit Rating CCC-/Watch Neg/C B/Watch Neg/B

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

Additional Contact:Financial Institutions EMEA;
Financial_Institutions_EMEA_Mailbox@spglobal.com

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