S&P lowers Vozrozhdenie

S&P said it lowered the long-term counterparty credit rating on Vozrozhdenie Bank to B from B+.

The agency said the rating remains on CreditWatch negative, where it was placed on Nov. 3, reflecting liquidity risks as well as the pressure on the capital and risk position of PromSvyazCapital, Vozrozhdenie Bank's parent group.

At the same time, S&P affirmed the B short-term rating on the bank.

Vozrozhdenie's sister company, Promsvyazbank, was placed under temporary administration by the banking regulator. This measure followed a prolonged period of negative publicity around the bank, regulatory and liquidity pressures, and the departure of a number of top managers, S&P explained.

“We believe that Vozrozhdenie Bank could be subject to negative spillover effects from the regulatory intervention in its sister bank, resulting in client fund outflows and pressure on liquidity,” the agency said in a news release.

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