S&P: LipetskComBank on developing watch

Standard & Poor's said it placed its B long-term counterparty credit and ruBBB+ Russia national scale ratings on LipetskComBank on CreditWatch with developing implications, and affirmed its C short-term rating.

The placement follows the announced sale by OJSC Novolipetsk Steel (BB+ with stable outlook), and its affiliated companies, of 89.7% stake in the bank to Bank Zenit (not rated), S&P said. The action also reflects the uncertainties of the impact on the bank.

S&P said it considers this change of ownership creates uncertainties on the continuation of strong business relationships between the bank and Novolipetsk Steel, which could be negative for the bank.

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