S&P revises Menatep outlook

Standard & Poor's said it revised its outlook on Russian bank Menatep St. Petersburg to negative from developing.

At the same time, the CCC+ long-term and C short-term counterparty ratings were affirmed.

The move reflects S&P's growing concerns over the potential negative impact on the bank's reputation, business risks, and liquidity of the ongoing legal and tax allegations against fellow Group Menatep company OAO NK Yukos (BB/Watch Negative/--) and its core shareholders and employees.

"The ratings of MSPb could be lowered depending on the further development and resolution of the Russian government's investigation of Yukos," S&P credit analyst Ekaterina Trofimova said.

"Although this affair has so far had only a limited impact on MSPb's liquidity, it could be potentially damaging to the bank's reputation and creditworthiness."

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