S&P downgrades Bank Uralsib

Standard & Poor’s said it lowered the B- long-term and C short-term counterparty credit ratings on Bank Uralsib PJSC to SD (selective default).

The downgrade follows news that the bank canceled all its outstanding subordinated debts, including non-hybrid old-style loans without loss-absorption features, S&P said.

This is a scenario that was not previously envisaged by S&P, the agency said.

The executed cancelation of two non-hybrid old-style subordinated bilateral loans of $73.6 million due in 2017 and RUB 6 billion due in 2019 is considered non-payment in full, S&P said.

This is because at the close of the transaction, investors will receive less than they were promised in the original agreements on the maturity date, the agency said.

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