S&P cuts Russian financial institutions to stable

Standard & Poor's said that it had revised its outlooks on the long-term ratings on seven Russian financial institutions to stable from positive.

The long-term ratings on all the banks were affirmed, but the national-scale ratings on two of the seven were lowered, the agency added, noting that the outlook revisions reflect the fact that market conditions in Russia have become much more difficult and volatile, especially with regard to the tightened liquidity situation and tougher refinancing conditions.

S&P said that it expects these factors to pressure banks' near-term financial performance and financial flexibility, as well as hinder their strategic expansion goals.

Affected ratings include: Bank Soyuz counterparty credit rating at B/stable/C from B/positive/B and Russia national-scale to ruA- from ruA; Commercial Bank Petrocommerce (OJSC) at counterparty credit rating at B+/stable/B at B+/positive/B and Russia national-scale at ruA+ at ruA+; National Factoring Co. at counterparty credit rating at B-/stable/C from B-/positive/C and Russia national-scale at ruBBB from ruBBB+;

Rosbank OJSC at counterparty credit rating at BB+/stable/B from BB+/positive/B and Russia national-scale at ruAA+; Rusfinance Bank at counterparty credit rating at BB+/stable/B from BB+/positive/B and Russia national-scale at ruAA; Surgutneftegasbank at counterparty credit rating at B+/stable/B from B+/positive/B; and TransCreditBank counterparty credit rating at BB/stable/B from BB/positive/B and Russia national-scale at ruAA.

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