International rating agency Fitch Ratings has placed long-term Issuer Default Ratings (IDR) of Svyaz-Bank (BB) and Bank Globex (BB-) on Rating Watch Negative, Fitch's press service reported.
"The RWN status reflects the risk that the support of these banks will become less certain if they are sold by its current owner, Vnesheconombank (VEB, BBB-/negative outlook), to the Deposit Insurance Agency (DIA)," the agency noted in a press release.
The assignment of Bank Globex and Svyaz-Bank to the DIA is provided for in VEB's rehabilitation plan, VEB CEO Vladimir Dmitriev said at the World Economic Forum in Davos. VEB's 2 subsidiary banks may be folded into Rossiyskiy Capital.
Svyaz-Bank's ratings will likely be lowered at least by a notch to BB- (the same rating as Rossiyskiy Capital's) after the bank's sale to DIA. Ratings both of Svyaz-Bank and Bank Globex may be lowered below BB- and potentially to their BFSRs (b for Svyaz-Bank, and b- for Bank Globex) if Fitch thinks that support of the banks becomes more uncertain, for instance, because of the fact that DIA may sell them in the short/medium term, Fitch added.
