S&P: International Bank of Saint-Petersburg on watch

S&P said it placed its long- and short-term B-/B ratings on International Bank of Saint-Petersburg (IBSP) on CreditWatch with negative implications.

The agency said the placement follows IBSP's extension of the maturity of its exposures to nonresident commodity traders, which currently constitute around $158 million on a net basis, or around 23% of IBSP's net balance sheet under Russian accounting standards.

“IBSP's loan restructuring has already created the need for additional provisions under the Central Bank of Russia's requirements,” S&P said in a news release.

“This prompted IBSP to convert more than RUB 1.5 billion of subordinated debt to ensure regulatory compliance–in addition to a conversion that took place earlier this year–and we project that the bank may have further provisioning needs.”

© 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.