S&P downgrades VTB Bank rating to "BB+"

S&P Global Ratings has lowered its long- and short-term issuer credit ratings on VTB to 'BB+/B' from 'BBB-/A-3, and also placed the ratings on CreditWatch with negative implications, Report informs referring to the message of the agency.

"In addition, we lowered to 'BB+' from 'BBB-' our rating on the bank's US-denominated senior unsecured debt as well as placed our 'B' rating CreditWatch negative on VTB's subordinated debt. We then suspended the ratings," S&P said. "As well, we lowered our long-term rating on London-based VTB Capital PLC to 'BB' from 'BB+', placed the ratings on CreditWatch negative, and suspended them."

"The Office of Foreign Assets Control's (OFAC's) inclusion of VTB Bank and VTB Capital in its Specially Designated Nationals and Blocked Persons list, could materially affect the entities' operations and financial risk profile. We suspended our ratings on VTB Bank and VTB Capital following the inclusion on the list. We will consider the suspension status and might reinstate the ratings if the OFAC sanctions are lifted, all else being equal."