S&P keeps Bank Soyuz on developing watch

Standard & Poor's said it was keeping the B- long-term and C short-term counterparty credit ratings and the ruBBB- Russia national scale rating on Bank Soyuz on CreditWatch with developing implications, where they were placed on Jan. 14.

"The CreditWatch placement reflects the continuing uncertainties regarding Bank Soyuz's current status, safe resolution of recapitalization plans, ownership transfer and asset buyout," S&P analyst Victor Nikolskiy said in a statement.

The bank continues to benefit from substantial government support via massive funding provided by the government's deposit insurance agency, according to the agency.

The bank's current stand-alone credit profile is very weak, characterized by high credit risks, significantly eroded capitalization and weak profitability, the agency said.

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