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.
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Related Research
- Russia Ratings Lowered To 'CCC-' And Kept On CreditWatch Negative On Increasing Risk Of Default, March 3, 2022
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 |
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