S&P cuts Russian banks

S&P said it downgraded ratings for Alpha-Bank JSC, ABH Financial Ltd. and Gazprombank JSC and placed them on CreditWatch with negative implications.

The downgrades follow the downgrade on Russia’s sovereign ratings, which were also placed on CreditWatch, after it expanded its military operations in Ukraine.

S&P lowered Alpha-Bank’s issuer rating to BB+ from BBB-, the senior unsecured rating of Alfa Holding Issuance plc to BB- from BB+ and ABH Financial Ltd.’s issuer and senior unsecured ratings to BB- from BB+. The agency also cut Gazprombank and its senior unsecured rating to BB+ from BBB+.

Concurrently, S&P affirmed its ratings for Credit Bank of Moscow and CBOM Finance plc at BB and placed them on CreditWatch with negative implications.

“We aim to resolve the CreditWatch once we have more clarity on the full macroeconomic repercussions of the sanctions and the evolution of the geopolitical conflict, including visibility on the risk of new restrictions and their impact on Russia's banking industry,” the agency said in a press release.

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