S&P might lower VTB Bank

Standard & Poor's said it placed its BBB-/A-3 long- and short-term ratings on Russia's VTB Bank JSC on CreditWatch with negative implications.

The agency also placed the ruAAA Russia national scale ratings and the senior unsecured and subordinated debt ratings on CreditWatch with negative implications.

At the same time, S&P placed the BBB-/A-3 long- and short-term ratings on VTB JSC subsidiaries Bank of Moscow OJSC, VTB Capital plc, VTB-Leasing and VTB-Leasing Finance on CreditWatch with negative implications.

The BB+ long-term ratings on VTB Bank (Kazakhstan), VTB Bank (Austria) AG and VTB Bank (France) were also placed on CreditWatch negative and the B short-term ratings were affirmed.

S&P placed the local currency long-term counterparty and financial strength ratings of BBB- on VTB Insurance Ltd. on CreditWatch negative as well.

VTB Bank (Georgia)’s BB-/B ratings were affirmed with a stable outlook.

S&P said the rating actions follow a similar rating action on Russia. The CreditWatch placement stems from what the agency views as a rapid deterioration of Russia's monetary flexibility and the impact of the weakening economy on its financial system.

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