Fitch: Sviaz-Bank, Globexbank on negative watch

Fitch Ratings said it placed Sviaz-Bank’s and Globexbank’s respective long-term issuer default ratings of BB and BB- on Rating Watch negative.

The negative watch reflects a risk that support for the banks will become less certain if they are sold by their current owner, Vnesheconombank, to the state-owned Deposit Insurance Agency, Fitch said.

The banks may be sold to the agency in the near term as part of the owner bank’s recapitalization process, the agency said.

The ratings on negative watch include Sviaz-Bank’s national long-term rating of AA-(rus), senior unsecured debt rating of BB and senior unsecured debt national rating of AA-(rus).

Globexbank’s national long-term rating of A+(rus) also is on negative watch, along with its senior unsecured debt rating of BB- and senior unsecured debt national rating of A+(rus).

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