Subscription and demo access


 
About Interfax
Press Releases
Products & Services
Contact us
Customer Login
 


Headlines
 

09/30 17:53   FOREIGN INVESTORS BOUGHT NEARLY HALF OF RZD'S RUB EUROBOND ISSUE - VTB CAPITAL
 
09/30 17:49   LUKOIL BUDGETING FOR $40 OIL IN 2017, $50 IN 2018 AND $60 IN 2019 - ALEKPEROV
 
09/30 17:47   Moscow concerned over escalation between India, Pakistan, urges sides to start talks - Russian Foreign Ministry
 
09/30 17:44   Court sanctions arrest of former chief of criminal investigation department of Moscow's Presnensky district police station
 
09/30 17:44   Russia may keep grain harvest in 2017 at 2016 level - Tkachev
 
09/30 17:39   France is ready to organize meeting between presidents of Azerbaijan, Armenia
 
09/30 17:39   Russia to increase grain exports, but put own interests first - Tkachev
 
09/30 17:37   PhosAgro to consider Eurobond placement in February window of 2017
 
09/30 17:37   Sea Launch to be sold to Russian investor - Roscosmos head in report to Putin
 
09/30 17:36   Russian MinFin budgeting for 67.5, 68.7 and 71.1 rubles/$1 in 2017, 2018 and 2019 - Siluanov
 




 

Interfax.com  |  Interfax news  |  S&P affirms Vnesheconombank "BBB" rating, outlook...


News headlines


December 26, 2013 11:30

S&P affirms Vnesheconombank "BBB" rating, outlook stable (Part 2)

MOSCOW. Dec 26 (Interfax) - Standard & Poor's Ratings Services has affirmed its 'BBB/A-2' foreign currency and 'BBB+/A-2' local currency long- and short-term counterparty credit ratings on Russian government-owned development bank Vnesheconombank (VEB), the agency said in a press release.

The outlook is stable.

"The affirmation balances our expectation of timely and sufficient government support in almost any circumstances against a gradual weakening of VEB's financial profile, notably risks accumulated on its balance sheet. VEB's internally calculated capitalization remains under pressure because of continued portfolio growth and expected deterioration of loan portfolio quality. However, we consider that the Russian government is seeking a solution to VEB's weakening capitalization, seen for example in the news of a potential subordinated loan from the National Wealth Fund, and other options of support. Failure to maintain this internally calculated ratio above 10% could trigger substantial early repayments of some financial obligations and therefore could significantly deteriorate VEB's liquidity position. Should this risk appear close to manifesting, it would likely result in a change to our ratings or outlook on VEB," S&P said.

"We base our ratings on VEB on our opinion of its status as a government-related entity (GRE) with an 'almost certain' likelihood of timely and sufficient extraordinary support from the Russian government in case of financial difficulties. We therefore equalize our ratings on VEB with those on the Russian Federation (foreign currency: BBB/Stable/A-2; local currency: BBB+/Stable/A-2; Russia national scale 'ruAAA').

In accordance with our criteria for GREs, our view of an 'almost certain' likelihood of extraordinary government support is based on our assessment of VEB's 'critical' role for Russia as the government's prime public development institution, as well as its 'integral' link with Russia.

As a result, our local currency long-term credit rating on VEB is several notches higher than its stand-alone credit profile (SACP), which we currently assess at 'bb-', down from 'bb'. The revision of the SACP to 'bb-' reflects our expectation of continued deterioration in VEB's asset quality.

The 'bb-' SACP is based on our 'bb' anchor for financial institutions operating primarily in Russia, as well as the bank's 'strong' business position, 'moderate' capital and earnings, 'weak' risk position, 'average' funding, and 'adequate' liquidity.

The stable outlook reflects that on Russia. It incorporates our view that the government will provide sufficient support to VEB so as to prevent VEB's internally calculated capitalization ratio deteriorating below 10%. Future rating actions on VEB, positive or negative, will likely follow those on the sovereign, assuming ongoing government support is provided in line with our expectations, and VEB's public policy functions remain unchanged.

We might lower our local currency long-term rating on VEB over the next two years--even if the sovereign local currency rating remained unchanged-if VEB's link with the government weakened; for example, if VEB lost its special legal status. We could take a similar action if the government reduced VEB's role as a prime development institution. We do not currently expect either of these scenarios to occur, but if they did, it could lead us to lower the local long-term currency rating on VEB by one notch, if the SACP remains at 'bb-'.

A deterioration of VEB's financial profile, notably due to any doubt about the government's willingness to timely support its capitalization ratio above the internally calculated 10% ratio, might lead us to question the government's willingness to support VEB. This is not our base-case scenario, but in such a case we might reassess the number of notches of support we currently accord the rating on VEB according to our GRE methodology as well as the level of its SACP, which could fall to the 'b' category. In this hypothetical case, we could see substantial liquidity and capital pressure adding to the existing elevated credit risks," S&P said.

Pr of

(Our editorial staff can be reached at eng.editors@interfax.ru)

/Interfax/
 Subscription
You can access a demo version of, receive more information about or subscribe to Interfax publications by filling in and returning the form below. We also have dozens of reports in the Russian language, please indicate if you are interested.
Title:


Phone:


E-mail:


First name:


Company:


Country:
Last name:


Division:


City:
Products:
Central Asia & Caucasus Business Weekly
Central Asia General Newswire
Global Gas Analytics
Global Natural Gas Daily
Interfax Via Bloomberg Terminal
Kazakhstan General Newswire
Kazakhstan Mining Weekly
Kazakhstan Oil & Gas Weekly
Russia & CIS Announcements
Russia & CIS Banking and Finance Weekly
Russia & CIS Business and Financial Daily
Russia & CIS Business and Financial Newswire
Russia & CIS Business and Investment Weekly
Russia & CIS Business Law Weekly
Russia & CIS Business news
Russia & CIS Defense Industry Weekly
Russia & CIS Diplomatic Panorama
Russia & CIS Energy Daily
Russia & CIS Energy Newswire
Russia & CIS Events Calendar
Russia & CIS Food and Agriculture Weekly
Russia & CIS General Newswire
Russia & CIS Headline News
Russia & CIS Insurance Weekly
Russia & CIS IT and Telecom Weekly
Russia & CIS Metals and Mining Weekly
Russia & CIS Military Daily
Russia & CIS Military Newswire
Russia & CIS Military Weekly
Russia & CIS Oil and Gas Weekly
Russia & CIS Presidential Bulletin
Russia & CIS Statistics Weekly
Russia Health & Pharmaceuticals
Russia Market Roundup
Russia Press Review
Ukraine Business Daily
Ukraine Business Weekly
Ukraine General Newswire
Please enter the digits from picture in the box below:

September 30, 2016
 
17:49
LUKOIL BUDGETING FOR $40 OIL IN 2017, $50 IN 2018 AND $60 IN 2019 - ALEKPEROV
 
17:47
Moscow concerned over escalation between India, Pakistan, urges sides to start talks - Russian Foreign Ministry
 
17:44
Court sanctions arrest of former chief of criminal investigation department of Moscow's Presnensky district police station
 
17:44
Russia may keep grain harvest in 2017 at 2016 level - Tkachev
 
17:39
France is ready to organize meeting between presidents of Azerbaijan, Armenia
 
17:39
Russia to increase grain exports, but put own interests first - Tkachev
 
17:37
PhosAgro to consider Eurobond placement in February window of 2017
 
17:37
Sea Launch to be sold to Russian investor - Roscosmos head in report to Putin
 
17:36
Russian MinFin budgeting for 67.5, 68.7 and 71.1 rubles/$1 in 2017, 2018 and 2019 - Siluanov
 
17:33
Donetsk, Luhansk failing to observe regime of calm in three pilot areas, one may not play giveaway any longer - Kuchma
 
17:30
Russia is coming to realize U.S. initial goal was to protect al-Nusra and keep it for Plan B - Lavrov (Part 3)
 
17:18
Medvedev speaks about importance of social stability for economic growth, citing experience of October Revolution
 
17:18
RZD placing 15 bln rubles in 7-yr Eurobonds at 9.2% - source
 
17:16
PhosAgro reduces debt by only $100 mln in 2016 due to poor market situation
 
 more headlines 



Interviews
 

.
George Papadopoulos has been one of U.S. presidential candidate Donald Trumps foreign political advisors since March 2016. Prior to this, he was an advisor to Ben Carson, a neurosurgeon and Republican Party member who dropped out of the presidential race. Papadopoulos previously worked for various research institutes dealing with global politics. His sphere of interest is global energy. Papadopoulos has given an interview to Interfaxs correspondent Ksenia Baygarova in which he discusses his views on U.S.-Russia relations, the Syrian crisis, NATO expansion and the dependence of the EU on Russian energy. Papadopoulos noted that his opinion does not necessarily coincide with that of Trump.

more
.
.
U.S. co-chairman of the OSCE Minsk Group James Warlick, who has recently visited Moscow, has given an interview to Interfax‘s foreign political desk editor-in-chief Olga Golovanova in which he speaks about Washington‘s perception of the prospects of the Nagorno-Karabakh settlement.

more
.
.
Indian Ambassador to Russia has given an interview to Interfax in which he speaks about the current state of Indian-Russian relations and India‘s position on Afghanistan settlement.

more

 
  
 ©   1991—2016   Interfax Information Service. All rights reserved.
contact information   |   Interfax offices   |   made by web.finmarket

News and other data on this site are provided for information purposes only, and are not intended for republication or redistribution. Republication or redistribution of Interfax content, including by framing or similar means, is expressly prohibited without the prior written consent of Interfax.

Browse other Interfax sites:  Interfax.ru   |   IFX.RU   |   Interfax Group   Rambler's Top100