S&P puts B&N Bank’s B rating on watch list developing

MOSCOW, Sep 25 (PRIME) -- S&P Global Ratings (S&P) agency placed a B long-term credit rating of Russia’s 11th largest bank B&N Bank on CreditWatch list with developing implications, it said in a statement late on September 22.

S&P also affirmed the bank’s short-term rating at B.

The bank has experienced problems with about 5% of client cash outflow over the past weeks, the agency said.

“Considering the bank’s asset structure, of which about 50% is loans to affiliate Rost Bank that is also under a bail-out procedure by the central bank, even such an insignificant outflow may seriously impact the liquidity,” it said.

On September 20, the central bank decided to provide financial aid to B&N Bank and its affiliate Rost Bank to support their liquidity, setting no moratorium on creditor demand fulfillment. An interim administration was introduced.

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