Fitch cuts Vnesheconombank, Sberbank

Fitch Ratings said it has downgraded the long-term foreign currency issuer default ratings and debt ratings of 30 Russian and Russian-owned financial institutions by one notch, including Vnesheconombank and Sberbank.

The rating actions follows the downgrade of Russia's sovereign ratings and revision of the country ceiling, the agency noted.

The downgrades of Vnesheconombank (to BBB- from BBB), Russian Agricultural Bank (to BB+ from BBB-) and Gazprombank (to BB+ from BBB-) reflect Fitch's view that Russia's financial flexibility, and therefore ability to provide support to these entities, has somewhat reduced, as reflected by the downgrade of the sovereign rating.

The downgrades of Sberbank of Russia (to BBB- from BBB) and National Clearing Centre (to BBB- from BBB) reflect the lowering of Russia's country ceiling to BBB-. These entities' ratings remain underpinned by their standalone strength, as well as potential sovereign support, Fitch said.

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