S&P cuts five Russian banks

Standard & Poor's said that it has lowered its long- and short-term counterparty credit ratings to BBB/A-3 from BBB+/A-2 on JSC VTB Bank, Bank VTB 24, VTB-Leasing, Raiffeisenbank ZAO and ZAO UniCredit Bank.

At the same time, the agency said that the long-term counterparty credit rating on VTB-Leasing Finance was lowered to BBB from BBB+.

The outlooks are negative.

At the same time, S&P said it affirmed its Russia national-scale rating of ruAAA on JSC VTB Bank, Bank VTB 24, VTB-Leasing, and Raiffeisenbank ZAO.

"This rating action follows the agency's lowering of the foreign currency sovereign credit ratings on the Russian Federation to BBB/A-3 from BBB+/A-2. It also takes into account its growing concerns about the impact of the deteriorating operating environment in Russia, which places downward pressure on the entities' stand-alone creditworthiness, including their asset quality, funding, and liquidity position," said S&P credit analyst Ekaterina Trofimova.

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