S&P Global Ratings on Dec. 21 placed Otkritie Financial Corp. Bank's BB- long-term counterparty credit rating and "ruAA-" Russia national-scale rating on CreditWatch with negative implications.
The bank's CreditWatch placement reflects the agency's view that the financial profile of the lender's parent, Otkritie Holding JSC, will potentially come under pressure due to the potential acquisition of PAO Rosgosstrakh, the soon-to-be-completed purchase of a Russian diamond mining company for $1.45 billion, which S&P Global Ratings expects to be funded by debt, and Otkritie Holding's prolonged process to receive additional funding for the financial rehabilitation of National Bank TRUST PJSC.
S&P Global Ratings intends to resolve Otkritie Financial Corp.'s CreditWatch within three months, when due diligence and the integration roadmap for Rosgosstrakh are finalized and the agency expects to have better visibility on the future capital position of the lender and its parent. It will also keep an eye on the group's more medium-term objectives.
At the same time, the agency affirmed Otkritie Financial Corp.'s B short-term counterparty credit rating.
S&P Global Ratings and S&P Global Market Intelligence are owned by S&P Global Inc.