S&P rates Vnesheconombank

Standard & Poor's said it assigned its BBB- long-term foreign currency, BBB long-term local currency and A-3 short-term issuer credit ratings to the Russia-based Vnesheconombank (VEB).

The outlook is stable.

The ratings on VEB reflect the strong support of the government of The Russian Federation (foreign currency BBB-/stable/A-3; local currency BBB/stable/A-3), underpinned by the government's direct 100% ownership of VEB and the bank's key public policy role, S&P said.

Although there is no government guarantee to service VEB's obligations on a timely basis, strong sovereign support is demonstrated by government funding and capitalization policies, the agency added. These policies include periodic capital increases, stable funding in the form of lending from the central bank and the government, and transfers of commissions and fees from the Ministry of Finance.

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