S&P cuts Russian Standard Bank

Standard & Poor’s said it lowered its long-term counterparty credit rating on Russian Standard Bank JSC to CCC- from B- and the long-term Russia national scale rating to ruCCC- from ruBBB-. The outlook on the long-term counterparty credit rating is negative.

At the same time, S&P affirmed the short-term counterparty rating on the bank at C.

In addition, S&P lowered the issue ratings on RSB’s senior unsecured debt to CCC- from B- and on its subordinated debt to C from CCC.

“The downgrade reflects RSB’s continued weak financial performance,” said S&P credit analyst Sergey Voronenko in a news release. “The bank's asset quality metrics continue to deteriorate, while its capacity to absorb loan losses continues to fall on the back of its declining margins. This adds pressure on the bank’s capitalization, in our view.”

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