The rating affirmation reflects the Agency’s view Standard & Poor’s that Gazprombank will be able to withstand increased losses on loans and decrease of profitability due to the worsening economic situation in Russia.
MOSCOW, 3 Nov. International rating Agency Standard & Poor’s affirmed the long-term and short-term counterparty ratings of Gazprombank at the level “BB+/B”, respectively, with a negative Outlook, said in the statement.
Simultaneously, national scale rating of the Bank was affirmed at “ruAA+”.
“The rating affirmation reflects our view that Gazprombank will be able to withstand the pressure on the characteristics of its creditworthiness, due to the greater than we expected earlier, increased credit losses and reduced profitability due to the worsening economic situation in Russia”, — stated in the message.
S&P analysts evaluate the business position of “Gazprombank” as “strong.” “In our assessment accounted for a stable position of the Bank as the third largest financial institution in Russia, a strong market position, especially in the segment of corporate banking services (approximately 9% of corporate loans of the banking system) due to the sustained relationship with a number of large Russian companies”, — stated in the message.
It is noted that the Russian government has demonstrated a strong willingness to provide “Gazprombank” support. S&P expects that the state will directly or indirectly support the Bank’s capital increase to ensure adequate competitive position in the market.
The negative Outlook on the ratings of Gazprombank and its core subsidiary Bank Gazprombank (Switzerland) Ltd. reflects the forecast on sovereign credit ratings and S&P’s view that the amount of state support available to the Bank, may be reduced and the pressure at the position of “Gazprombank” on risk and capital ratios can increase due to deterioration of asset quality.