S&P lowers 20 Russia banks, companies

Standard & Poor’s said it took various negative rating actions on 20 Russia-related financial institutions and four Russia-related privately-owned entities.

The agency said it downgraded government-related entities and members of government-related groups.

The downgrades reflect the government’s decreasing capacity to provide timely and sufficient extraordinary support to these entities, as well as possible pressures on their financial profiles owing to the worsening operating and economic environment in Russia.

The downgraded ratings include VTB Bank JSC and its core group members to BB+/B and ruAA+.

Also downgraded was Gazprombank and its core group member, Gazprombank (Switzerland) Ltd., to BB+/B.

VEB-leasing OJSC also was downgraded to BB+/B, along with Tenex-Service to BB/B.

The outlooks on all of these entities are negative, mirroring the outlook on either the sovereign or the parent, S&P said, and indicating the risk of lower capacity from the government to support banks.

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