<a href=/RCL/BAN/009/?lnk=yes target=_blank><img src=/RCL/BAN/009/141014_1.gif width=1050 height=60 border=0></a>
Subscription and demo access


 
About Interfax
Press Releases
Products & Services
Contact Us
Customer Login
 


Headlines
 

10/31 22:38   Ukraine, Russia sign protocol on joint control at Dyakove-Kuibyshevo checkpoint (Part 2)
 
10/31 22:23   Ukraine, Russia sign protocol on joint control at Dyakove-Kuibyshevo checkpoint
 
10/31 22:03   Glonass/GPS equipment being tested onboard Progress cargo spacecraft
 
10/31 21:45   Fourteen Russian companies to display exhibits at Indo Defense 2014 exhibition in Jakarta
 
10/31 21:41   United Shipbuilding Corporation displays mockups of prospective warships at Euronaval exhibition
 
10/31 21:23   Nine MH17 air crash victims still unidentified - Dutch govt
 
10/31 21:14   Ukrainian troops receive 150 mln hryvni worth of weapons, hardware - deputy defense minister
 
10/31 20:59   Ekho Moskvy told to submit website registration papers - Venediktov
 
10/31 20:45   Akhmetov, Bogolyubov, Kolomoyskyi top list of richest Ukrainians - magazine
 
10/31 20:44   Moscow aware of arrest of nuclear technology company chief in U.S. - Foreign Ministry
 




 

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

October 31, 2014
 
22:38
Ukraine, Russia sign protocol on joint control at Dyakove-Kuibyshevo checkpoint (Part 2)
 
22:23
Ukraine, Russia sign protocol on joint control at Dyakove-Kuibyshevo checkpoint
 
22:03
 
21:45
Fourteen Russian companies to display exhibits at Indo Defense 2014 exhibition in Jakarta
 
21:41
United Shipbuilding Corporation displays mockups of prospective warships at Euronaval exhibition
 
21:23
Nine MH17 air crash victims still unidentified - Dutch govt
 
21:14
Ukrainian troops receive 150 mln hryvni worth of weapons, hardware - deputy defense minister
 
20:59
Ekho Moskvy told to submit website registration papers - Venediktov
 
20:45
Akhmetov, Bogolyubov, Kolomoyskyi top list of richest Ukrainians - magazine
 
20:44
Moscow aware of arrest of nuclear technology company chief in U.S. - Foreign Ministry
 
20:38
Main indexes of the Russia stock market for October 31
 
20:21
MOSCOW AWARE OF RUSSIAN CITIZEN VADIM MIKERIN'S ARREST IN WASHINGTON, DOING ALL IT CAN TO DEFEND HIS RIGHTS - RUSSIAN FOREIGN MINISTRY HUMAN RIGHTS COMMISSIONER DOLGOV TO INTERFAX
 
19:59
Russian stock market gains on gas deal
 
19:56
Results of Interregional Trading for OFZ & OBR
 
 more headlines 



Interviews
 

.
The name Arkady Rotenberg has been in the news far more frequently than usual in recent months. The billionaire was hit by the first wave of European Union sanctions against Russia, and has already challenged this decision in court. Recently it was reported that the businessman has sold part of his assets to his eldest son. Arkady Rotenberg spoke in an interview with Interfax about whether there was a link between these two developments, the impact of sanctions on his business, his friendship with President Vladimir Putin and many other topics.

more
.
.
Pakistani Ambassador to Russian Zaheer Aslam Janjua has given an interview to Interfax in which he speaks about prospects for supplying more Pakistani food products to Russia, the quality of such products and invites Russian companies to implement infrastructural projects in Pakistan.

more
.
.
John Padilla, managing director of consultants IPD Latin America, talks to Interfax about Colombia’s investment climate.

more

 
  
 ©   1991—2014   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