Fitch lowers Russia banks

Fitch Ratings said it downgraded the long-term issuer default ratings of several foreign-owned Russian banks to BBB from BBB+.

The downgrades follow the downgrade of Russia’s country ceiling to BBB from BBB+, Fitch said.

The downgrades are due to a view that sanctions from and deteriorating relations with the European Union and United States pose risks to Russia’s financial integration with the rest of the world, increasing transfer and convertibility risk, the agency said.

The banks’ ratings are now in line with those of the Russian sovereign instead of a notch higher, Fitch said.

The downgraded ratings include ZAO Raiffeisenbank’s long-term foreign-currency issuer default rating to BBB from BBB+, long-term local-currency issuer default rating to BBB from BBB+, short-term foreign-currency issuer default rating to F3 from F2, senior unsecured debt to BBB from BBB+ and senior unsecured debt to BBB from BBB+. Its national long-term rating was affirmed at AAA(rus) and its viability rating of BBB- is unaffected.

Rosbank’s long-term foreign-currency issuer default rating was downgraded to BBB from BBB+, long-term local-currency issuer default rating to BBB from BBB+, short-term foreign-currency issuer default rating to F3 from F2, senior unsecured market-linked securities to BBB(emr) from BBB+(emr) and senior unsecured debt to BBB/F3 from BBB+/F2. Its national long-term rating was affirmed at AAA(rus) and its viability rating is unaffected at BB+.

Rusfinance Bank’s long-term foreign-currency issuer default rating was downgraded to BBB from BBB+, long-term local-currency issuer default rating was downgraded to BBB from BBB+, short-term foreign-currency issuer default rating to F3 from F2 and senior unsecured debt to BBB from BBB+. Its national long-term rating was affirmed at AAA(rus) and its viability rating is unaffected at BB+.

DeltaCredit Bank’s long-term foreign-currency issuer default rating was downgraded to BBB from BBB+, long-term local-currency issuer default rating to BBB from BBB+, short-term foreign-currency issuer default rating to F3 from F2 and senior unsecured debt to BBB from BBB+, along with the senior unsecured debt of DCB Finance Ltd. downgraded to BBB from BBB+. Its national long-term rating was affirmed at AAA(rus) and its viability rating is unaffected at BB+.

ING Bank (Eurasia) ZAO’s long-term foreign-currency issuer default rating was downgraded to BBB from BBB+ and long-term local-currency issuer default rating to BBB from BBB+, short-term foreign-currency issuer default rating to F3 from F2 and senior unsecured debt to BBB from BBB+. Its national long-term rating was affirmed at AAA(rus).

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