S&P: International Industrial view negative

Standard & Poor's said it revised the outlook on International Industrial Bank to negative from stable and affirmed its BB- long-term and B short-term counterparty credit ratings.

"The outlook revision reflects the increased risks to the bank's creditworthiness caused by accelerating systemic risks, the sharp deterioration of Russia's securities and money markets, tightened liquidity and refinancing possibilities, and rising credit risks," S&P analyst Elena Romanova said in a statement.

"Moreover, high single-name and related-party concentrations on both sides of the balance sheet, insufficiently diversified funding and increasing pressure on IIB's asset quality are among the major areas of concern."

These constraints are mitigated by the bank's historically high capitalization, ability to maintain decent asset quality and good track record of sustainable core business profitability, the agency said.

Ratings reflect the bank's standalone credit quality and do not include any uplift for extraordinary external support, either from its owners or the government, S&P said.

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