The international rating agency S&P Global Ratings placed on review with the possibility of downgrading the long-term bank deposit ratings in national and foreign currency of Promsvyazbank (PSB) at BB / B in CreditWatch and suspended them, the agency’s press service said.
“Today, S&P Global Ratings has assigned Promsvyazbank (PSB) long-term and short-term foreign and local currency ratings of BB/B with a “negative” outlook. We have also suspended the ratings of PSB,” S&P reported.
The rating agency also noted that the probability of a default by PSB in the next 12 months is expected to be relatively low, despite the fact that the bank is included in the OFAC (Office of Foreign Assets Control) list of Specially Designated Persons and Blocked Persons (SDN).
The bank is focused on serving the Russian defense sector, which means that most of its operations are conducted in Russia and in local currency. Thus, S&P limited its rating action to a negative placement of CreditWatch, reflecting the view that sanctions on the Russian economy and the bank’s counterparties could weaken Promsvyazbank’s financial profile, the agency said.