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Ratings On Cyprus-Based RCB Bank Ltd. Suspended Following Similar Action On Significant Former Shareholder

  • The U.S. Department of the Treasury's Office Of Foreign Assets Control (OFAC) introduced sanctions against VTB Bank JSC and its subsidiaries on Feb. 24. 2022.
  • On Feb. 24, 2022, VTB Bank also sold its 46.3% stake in Cyprus-based RCB Bank Ltd. to the bank's Cypriot shareholders, controlled by members of RCB's management. This was part of management's plan to protect RCB Bank from escalating geopolitical tensions.
  • In light of the specific circumstances of the ownership transfer in the context of sanctions on VTB Bank, we suspended our 'B+/B' issuer credit ratings on RCB Bank.
  • The ratings remained on CreditWatch negative, where they were placed on March 8, 2022, at the time of the suspension.

NEW YORK (S&P Global Ratings) March 21, 2022--S&P Global Ratings today suspended its 'B+/B' long- and short-term issuer credit ratings on RCB Bank Ltd.

The ratings suspension reflects our view that, given the circumstances and timing of the transaction in the context of sanctions against VTB Bank, we are unable to assess: the full impact on RCB Bank of the transfer of a 46.3% stake in RCB by VTB Bank (previously a significant shareholder of the bank) to the management of RCB Bank; and the links between RCB Bank and VTB Bank. In addition, the ownership transfer is still subject to regulatory approval from the European Single Supervisory Mechanism.

We will consider the suspension status of our ratings on the bank in the coming months and might reinstate them as a result of our assessment.

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RCB Bank Ltd.

Issuer Credit Rating NR/NR 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

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