S&P upgrades Promsvyazbank

S&P said it raised its long-term issuer credit rating on Promsvyazbank to BB- from B+ and removed it from CreditWatch positive, where it was placed on Jan. 29, 2018. The outlook is stable.

S&P also affirmed its B short-term rating on Promsvyazbank.

“The upgrade mainly reflects our view of the bank's stronger link with the government after its ownership transfer to the Federal Agency for State Property Management (Rosimuschestvo) and the formation of a new management team consisting of high-profile executives with extensive backgrounds in working at government-related entities,” S&P said in a news release.

“It also reflects that the bank received around Russian ruble (RUB) 243 billion of fresh capital from the state as part of its financial rehabilitation and transferred a significant part of its problem assets to the state's Banking Sector Consolidation Fund.”

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