S&P cuts Vozrozhdenie Bank

S&P said it lowered the long-term issuer credit rating on Vozrozhdenie Bank to B+ from BB- and placed it on CreditWatch with negative implications.

At the same time, the agency affirmed the B short-term issuer credit rating on the bank.

“The downgrade of Vozrozhdenie Bank reflects our view that the prolonged period of negative publicity around Promsvyazbank, regulatory pressures, strategic uncertainties and the departure of a number of top managers in recent months make it more difficult for Promsvyaz Capital group to preserve its business franchise,” S&P said in a news release.

“We also note the recent announcement that Promsvyazbank and Vozrozhdenie Bank have postponed their merger.”

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