S&P Global Ratings on Dec. 12 lowered GLOBEX Commercial Bank JSC's long-term counterparty credit rating to B+ from BB- and its Russia national-scale rating to ruA from ruAA-.
The downgrade reflects continued pressure on the bank's profitability and capitalization that, in the agency's view, constrains the lender's competitive position and puts its overall viability at risk without external support.
The outlook on the long-term counterparty credit rating is negative, reflecting the likely negative impact of Russia's weakened operating environment on the bank's financial profile. The bank's short-term counterparty credit rating was affirmed at B.
S&P noted that while Vnesheconombank will continue to support unit GLOBEX, the former intends to eventually sell the unit.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.