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Research Update: Safmar Financial Investments Ratings Lowered To 'CC/C' And Withdrawn Following The EU's Decision

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Research Update: Safmar Financial Investments Ratings Lowered To 'CC/C' And Withdrawn Following The EU's Decision

Rating Action

On April 1, 2022, S&P Global Ratings lowered its long-term issuer credit ratings on Safmar Financial Investments (SFI) to 'CC' from 'CCC-', following its downgrade to Russia on March 17, 2022. S&P Global Ratings also affirmed its 'C' short-term issuer credit ratings on the company. The ratings remain on CreditWatch with negative implications. Subsequently, S&P Global Ratings withdrew its ratings on SFI.

Rationale

The downgrade follows the lowering of our transfer and convertibility (T&C) assessment on Russia to 'CC' from 'CCC-' and the lowering of the foreign and local currency sovereign credit ratings on Russia to 'CC/C' from 'CCC-/C'; all sovereign ratings remain on Watch negative (see "Russia Foreign And Local Currency Ratings Lowered To 'CC' On High Vulnerability To Debt Nonpayment, Still On Watch Neg," published March 17, 2022, on RatingsDirect).

We capped the foreign currency rating on SFI at the level of the T&C assessment on Russia given the numerous currency restrictions the Central Bank of Russia had imposed.

The ratings withdrawal follows the EU's decision on March 15 to ban the provision of credit ratings to legal persons, entities, or bodies established in Russia and our ensuing announcement that we will withdraw all our ratings on relevant issuers before April 15, 2022, the deadline imposed by the EU (see "S&P Global Ratings To Withdraw Ratings On Russian Entities," published March 21, 2022).

Related Criteria

Related Research

Ratings List

Downgraded; Ratings Affirmed
To From

SFI PJSC

Issuer Credit Rating CC/Watch Neg/C CCC-/Watch Neg/C
Withdrawn
To From

SFI PJSC

Issuer Credit Rating NR CC/Watch Neg/C
NR--Not rated.

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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