S&P affirms Vnesheconombank

Standard & Poor's said it affirmed its BBB+ long-term foreign-currency and A- long-term local-currency issuer credit ratings on Vnesheconombank. S&P affirmed its A-2 short-term local- and foreign-currency issuer credit ratings.

The outlook is stable.

The ratings on VEB are supported by strong sovereign support and adequate albeit declining levels of capitalization, liquidity and profitability, S&P said.

The ratings are constrained by the ratings on the issuer's sovereign owner. The bank's loan portfolio is concentrated in a few Russian economy sectors and in major Russian oil and gas companies, making the bank vulnerable to changes in equity valuations, the agency said.

The stable outlook reflects expectation that the bank will continue to play a strong public policy role in the areas of infrastructure and development-related financing, according to S&P.

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