Research Update: Russia-Based GLOBEXBANK Upgraded To 'BB' On Bank Criteria Change; Outlook Stable Dec 11
- Language: English
- Published: December 2011
The stable outlook reflects the balance between Standard & Poor's Ratings Services' expectation that GLOBEXBANK will sustain its strong links with Vnesheconombank (VEB; foreign currency BBB/Stable/A-3; local currency BBB+/Stable/A-2) against GLOBEXBANK's "moderate" business and risk positions and projected weakening capital, due to aggressive growth. The counterparty credit rating is capped by the stand-alone credit profile (SACP) of the parent VEB, which we assess at 'bb'. We might consider revising our assessment of GLOBEXBANK's SACP upward if we see a significant strengthening of GLOBEXBANK's business position through an expanding independent and stable client base and reduction of its risk appetite through a lower pace of growth. In addition, sustained capitalization, with the risk-adjusted capital (RAC) ratio before adjustments for diversification exceeding...
Companies mentioned in this report are:
Standard and Poors RatingsXpress Credit Research provides in-depth coverage of international corporates, financial institutions, insurance companies, utilities, sovereigns and structured finance programs. RatingsXpress Credit Research lets users determine the credit rating of holdings and identify key factors underlying an issuer's creditworthiness, distinguishes the different risk exposures for new and existing deals, and provides an understanding of how their analysts interpret key regulatory, political and environmental events and their economic impact.
This product consists of a Summary Analysis: Bi-annual (at least). An abbreviated analysis containing Standard & Poor's issuer credit ratings as of the time the article was published. The analysis includes a rating rationale - the basis on which the rating was assigned - and an outlook section if the issuer is not on CreditWatch. Financial statistics are not included. SHOW LESS READ MORE >