S&P trims Tatfondbank

S&P Global Ratings said it lowered its long- and short-term counterparty credit ratings on PJSC Tatfondbank to CCC-/C from B/B and placed them on CreditWatch with negative implications.

S&P also lowered its Russia national scale ratings on Tatfondbank to ruCCC- from ruBBB+ and placed them on CreditWatch negative.

At the same time, S&P lowered the ratings on Tatfondbank's senior unsecured obligations to CCC- and placed them on CreditWatch negative.

“We understand that, during the past few weeks, Tatfondbank experienced an unexpected outflow of customers' funds, estimated at about 6%-7% of the bank's total liabilities. We believe that Tatfondbank is facing liquidity risks and that counterparty confidence in the bank may have significantly reduced,” S&P said in a news release.

“We also note that the bank entered into a litigation process in recent months related to the deposit of about Russian ruble (RUB) 14 billion it received from the Bank Sovetskiy. Additionally, Tatfondbank has about RUB 5 billion of investments in bonds issued by Bank Peresvet (D/D), which is subject to a payment moratorium imposed by the Central Bank of Russia.

“We believe that these factors materially increase the pressure on Tatfondbank's liquidity position.”

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