S&P cuts Russia’s B&N Bank to B-, puts on credit watch negative

MOSCOW, Oct 19 (PRIME) -- International rating agency Standard & Poor’s has lowered long-term credit counteragent rating of Russia’s B&N Bank, also known as Binbank, to B- from B and placed it in a revision list for a further downgrade, the agency said in a statement on Monday.

The short-term rating was lowered to C from B, while rating on the national scale was decreased to ruBBB- from ruBBB+.

The ratings were cut due to uncertainty regarding integration of Rost Bank’s group, the agency said.

In December 2014, B&N Bank said it closed a deal to buy Rost Bank and its affiliates Kedr Bank, Akkobank, SÊÀ-Bank and Tveruniversalbank at a symbolic price for a further bail out. The central bank has promised that the DIA will provide B&N Bank with an 18.4 billion ruble loan for 10 years to complete the task and a 17.5 billion ruble loan for six years to sustain liquidity.

(61.3587 rubles – U.S. $1)

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