S&P cuts Khanty-Mansiysk Bank Otkritie

Standard & Poor's said it lowered its long-term foreign- and local-currency counterparty credit ratings on Khanty-Mansiysk Bank Otkritie PJSC (KhMBO) to B+ from BB- and affirmed the B short-term ratings.

At the same time, the agency lowered the Russia national-scale rating on the bank to ruA from ruAA-.

All of the ratings remain on CreditWatch, where they were placed with negative implications on Feb. 24, 2015.

As public comments from the senior management of Otkritie Holding have suggested, S&P said it believes that the company's strategy toward KhMBO could change.

In particular, it's the agency’s understanding that management is considering a merger of KhMBO with Trust Bank, which is currently under financial rehabilitation. Such a scenario, which now appears to be likely and might be realized within the three-year horizon, differs from S&P’s earlier assumptions that KhMBO would remain a part of the Bank OFC group.

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