S&P lowers International Bank of Saint-Petersburg

Standard & Poor’s said it lowered the long-term counterparty credit rating on International Bank of Saint-Petersburg (IBSP) to B- from B.

The outlook is negative.

The agency also said it affirmed the bank’s C short-term counterparty credit rating and lowered its Russia national scale rating to ruBBB- from ruBBB+.

The downgrades stem from an expectation that the bank’s capitalization will likely remain weak over the next 12- to 18-months due to the conversion of subordinated debt, S&P said.

The bank’s net interest margin also is expected to remain negative in 2015 and recover only slightly afterward as expensive funding sources reduce and lending diversifies, the agency said.

Pressure on earnings is expected to remain, though, due to the bank’s large portfolio of foreign-currency-denominated assets, S&P said.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.