S&P upgrades Russian banks

S&P said it raised its issuer credit ratings on BNP Paribas Bank JSC to BBB- from BB+, AO UniCredit Bank to BBB- from BB+ and Alfa Bank JSC to BB+ from BB, as well as its ratings on the debt issued by Volkswagen Bank RUS to BBB- from BB+.

The agency said the actions follow the upgrade of Russia on Feb. 23.

S&P said it raised the ratings because they continue to be capped at the sovereign rating level.

“In our opinion, the creditworthiness of these financial institutions will be constrained by the sovereign's creditworthiness, while benefiting from expected support from respective parent banking institutions,” the agency said in a news release.

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