S&P: Outlook negative for 13 Russian financial entities

Standard & Poor's said it revised its outlooks on the long-term ratings of 13 Russian financial institutions to negative from stable and affirmed their long-term ratings, including Troika Dialog Group Ltd., Bank Uralsib OJSC, Promsvyazbank OJSC, Bank Vozrozhdenie, OJSC Alfa-Bank, MDM Bank, Home Credit and Finance Bank LLC, Commercial Bank Petrocommerce OJSC, National Factoring Co., Investment Co. Veles Capital LLC, CentroCredit Bank JSC, West Siberian Commercial Bank and B.I.N.BANK.

The agency also lowered the Russia national scale rating of Commercial Bank Petrocommerce to ruA from ruA+, of National Factoring and Investment Co. Veles Capital to ruBBB- from ruBBB and of West Siberian Commercial Bank to ruBBB+ from ruA-. S&P said this reflects the more granulated credit rating approach under its national ratings scale.

The outlook revisions reflect S&P's growing concerns about the adverse impact of the ongoing domestic and international market turbulence with regard to the financial and commercial fundamentals of many domestic financial institutions. The agency said these relate to growing credit risks, tighter liquidity, pressured refinancing and weaker short-term growth prospects and reduced profitability, namely due to trading losses.

A positive development is that the Russian government seems increasingly willing to pursue orthodox measures to address the financial market turmoil, S&P said.

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