S&P has revised the assessment of country and industry risks of the banking sector in Russia

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AK&M 14 October 2021 12:01

On October 13, 2021, S&P Global Ratings took a number of rating actions against Russian banks. This is stated in the agency's message.

The long-term credit ratings of SOYUZ Bank (JSC) have been upgraded from "B+" to "BB-", the outlook is "Stable";

The long-term and short-term credit ratings of Gazprombank (Joint Stock Company) and its two main subsidiaries - Gazprombank (Switzerland) Ltd. and Bank GPB International S.A. - have been upgraded from "BB+/B" to "BBB-/A-3", the ratings forecasts are "Stable"; 

long-term and short-term credit ratings of ALFA-BANK JSC promoted from "BB+/B" to "BBB-/A-3", long-term credit rating of the holding company ABH Financial Ltd. upgraded from "BB-" to "BB+", short-term rating "B" confirmed, rating forecasts - "Stable";

The long-term credit ratings of Concern ROSSIUM LLC have been upgraded from "B" to "B+", the long-term and short-term credit ratings of PJSC CREDIT BANK OF MOSCOW have been confirmed at the level of "BB/B", the rating forecasts are "Stable";
the long-term credit rating of JSC JSCB "CentroCredit" (hereinafter — "CentroCredit") has been upgraded from "B" to "B+", the short-term rating "B" has been confirmed, the forecast is "Stable";

The long-term credit rating of PJSC Ural Bank for Reconstruction and Development has been upgraded from "B-" to "B", the short-term rating of "B" has been confirmed, the forecast is "Stable"; 

the outlook on the ratings of Renaissance Credit CB (LLC) has been revised from "Stable" to "Positive"; the ratings of "B+/B" have been confirmed;

the outlook on the ratings of JSC "Bank Russian Standard" has been revised from "Stable" to "Positive"; long-term and short-term credit ratings "B/W" have been confirmed;

the outlook on the ratings of PJSC Promsvyazbank has been revised from "Stable" to "Positive"; long-term and short-term credit ratings have been confirmed at the level of "BB/B";

VTB Bank's long-term and short-term credit ratings have been confirmed at BBB-/A-3, the outlook is Stable; the bank's subordinated debt rating has been upgraded from B- to B;

The long-term and short-term credit ratings of Sovcombank PJSC have been confirmed at the BB/B level, the outlook on the ratings remains "Positive";

The long-term and short-term credit ratings of Raiffeisenbank JSC have been confirmed at the BBB-/A-3 level; the outlook is Stable;

long-term and short-term credit ratings of JSC UniCredit Bank are confirmed at the level of "BBB-/A-3", the forecast is "Stable";

long-term and short-term credit ratings of JSC "RN Bank" are confirmed at the level of "BB+/In", the forecast is "Stable".

More favorable than previously expected macroeconomic conditions and a faster economic recovery limited the deterioration in the asset quality of Russian banks and contributed to the restoration of profitability. The capitalization and liquidity indicators of the banking system remain at an adequate level.

The agency believes that the long-term correction phase in the sector has ended and the recovery phase has begun. In this regard, the assessment of country and industry risks of the banking sector in Russia has been revised from "8" to "7", which leads to an increase in the base level of the rating of banks operating primarily in Russia from "bb-" to "bb".

S&P assesses trends in the development of economic and industry risks for Russian banks as stable, which reflects generally balanced risks in the next 12-18 months.