S&P: Russian Standard positive

Standard & Poor's said it placed its B long-term and C short-term counterparty credit ratings on Russian Standard Bank ZAO on CreditWatch with positive implications following the announcement that Cetelem (AA/stable/A-1+), a key consumer finance subsidiary of BNP Paribas (AA/stable/A-1+), had reached a shareholders' agreement to acquire a 50% stake in the financial holding arm that controls more than 90% of Russian Standard.

"The extent of the positive impact on the ratings will depend on the approval and completion of the transaction, as well as on the development of Russian Standard's financial profile and strategy," said S&P credit analyst Ekaterina Trofimova.

S&P said the current ratings on Russian Standard reflect its leading position in the nascent Russian consumer finance market, successful business model and strengthening financial profile, including improving profitability, geographically diversified business and improved funding resources.

Nevertheless, S&P said the ratings are constrained by the high risks of operating in the fast growing and untested Russian consumer finance market, the bank's relatively short operating history and its high dependence on wholesale funding.

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