The FINANCIAL — According to RIA Novosti, Fitch has downgraded rating outlooks for 12 Russian banks to negative from stable, the international rating agency said on November 10.
The agency also lowered the outlooks to negative for four European banking subsidiaries of Russian state development bank VTB, and two Russian leasing companies. The ratings of all the banks were affirmed at their current levels.
"This action follows today's revision of the outlook on Russia's issuer default ratings [IDRs] to negative from stable," Fitch said.
The change in outlooks on the IDRs of ZAO Unicredit Bank, Absolut Bank, ZAO Raiffeisenbank, Orgresbank and Rosbank reflects the potential downward revision of Russia's Country Ceiling, currently at A-, following the change in Russia's outlook, the agency said.
The change in outlooks on the long-term IDRs of Vnesheconombank, Sberbank, Bank VTB, Russian Agricultural Bank and Rosagroleasing reflect the "increased likelihood of a deterioration in the government's ability to provide support in case of need, as reflected in the change of the outlooks for the sovereign long-term IDRs."
"The change in outlooks on the long-term IDRs of Bank VTB North-West, Bank VTB24, VTB Leasing, VTB Bank (Austria), VTB Bank (France), VTB Bank Europe and Russian Commercial Bank (Cyprus) follows the revision of the outlook for their parent, Bank VTB, indicating a possible weakening of the latter's ability to support them due to, in its turn, possible deterioration in support from the Russian state."
"The change in outlook on the long-term IDR of Bank of Moscow (BOM) follows today's revision of the outlook on the City of Moscow's Long-term IDRs to Negative form Stable, also following the change of the outlooks for the Russian sovereign IDRs. The City of Moscow owns 44% of BOM directly and controls a further 15% through Capital Insurance Group", the agency said.