S&P downgrades Promsvyazbank

Standard & Poor's said it lowered its long-term counterparty credit ratings on Promsvyazbank to BB- from BB.

The outlook is stable.

At the same time, the agency lowered the Russia national scale rating to ruAA- from ruAA and affirmed the short-term counterparty credit rating at B.

S&P said the downgrade reflects its view that the bank's capital buffers will remain under pressure in 2014. The agency believes that, in the context of a pronounced economic slowdown in Russia, additional provisioning needs are likely to weigh on the bank's earnings through 2014, although not as much as in the fourth quarter of 2013 and the first quarter of 2014, which will prevent any significant core capital build-up.

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