Overview
- On Feb. 28, 2022, we lowered to 'BB+' and placed on CreditWatch negative our long-term issuer credit rating (ICR) on Alfa-Bank JSC.
- Consequently, under our criteria for rating repackaged securities, we have lowered to 'BB+p' from 'BBB-p' and placed on CreditWatch negative our rating on Special Purpose Company "Structured Investments 1" LLC repack notes because we weak-link our rating on the notes to the ICR on the bank account.
- On Feb. 26, 2022, we also lowered to 'BBB-' and placed on CreditWatch negative our rating on Russia's RUB150 billion fixed-rate note.
LONDON (S&P Global Ratings) March 3, 2022--S&P Global Ratings today lowered to 'BB+p' from 'BBB-p' and placed on CreditWatch negative our credit rating on Special Purpose Company "Structured Investments 1" LLC repack notes.
Today's rating action follows our Feb. 28, 2022, rating action on Alfa-Bank JSC and our Feb. 26, 2022, rating action on Russia's RUB150 billion fixed-rate note (see "Related Research").
Under our "Global Methodology For Rating Repackaged Securities" criteria, we weak-link our rating on Special Purpose Company "Structured Investments 1"'s repack notes to the lowest of:
- Our rating on the RUB150 billion fixed-rate note issued by Russia;
- Our ICR on Banque Internationale a Luxembourg as custodian; and
- Our ICR on Alfa-Bank JSC as bank account.
In placing our rating on CreditWatch negative we considered the recent rating actions on the underlying collateral and the bank account provider, and the uncertainty around the next underlying collateral payment, which is due in August 2022. This may be disrupted, given the current international payment sanctions.
S&P Global Ratings acknowledges a high degree of uncertainty about the extent, outcome, and consequences of Russia's military conflict in Ukraine. Irrespective of the duration of military hostilities, sanctions and related political risks are likely to remain in place for some time. Potential effects could include dislocated commodities markets -- notably for oil and gas -- supply chain disruptions, inflationary pressures, weaker growth, and capital market volatility. As the situation evolves, we will update our assumptions and estimates accordingly. See our macroeconomic and credit updates here: Russia-Ukraine Macro, Market, & Credit Risks. Note that the timing of publication for rating decisions on European issuers is subject to European regulatory requirements.
Related Criteria
- General Criteria: Environmental, Social, And Governance Principles In Credit Ratings, Oct. 10, 2021
- Criteria | Structured Finance | General: Global Framework For Payment Structure And Cash Flow Analysis Of Structured Finance Securities, Dec. 22, 2020
- Criteria | Structured Finance | General: Counterparty Risk Framework: Methodology And Assumptions, March 8, 2019
- Legal Criteria: Structured Finance: Asset Isolation And Special-Purpose Entity Methodology, March 29, 2017
- Criteria | Structured Finance | General: Global Framework For Assessing Operational Risk In Structured Finance Transactions, Oct. 9, 2014
- Criteria | Structured Finance | General: Global Methodology For Rating Repackaged Securities, Oct. 16, 2012
- General Criteria: Principles Of Credit Ratings, Feb. 16, 2011
Related Research
- Four Russian Banks Downgraded After Sovereign; Those And Other Financial Institutions Ratings On CreditWatch Negative, Feb 28, 2022
- Russia Foreign Currency Rating Lowered To 'BB+' And Put On CreditWatch Negative On Risks Related To Invasion Of Ukraine, Feb. 26, 2022
- 2017 EMEA Structured Credit Scenario And Sensitivity Analysis, July 6, 2017
- Global Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five Macroeconomic Factors, Dec. 16, 2016
- European Structured Finance Scenario And Sensitivity Analysis 2016: The Effects Of The Top Five Macroeconomic Factors, Dec. 16, 2016
- Assessing Credit Quality By The Weakest Link, Feb. 13, 2012
Additional Contact: | CDO Europe Surveillance; CDOEuropeanSurveillance@spglobal.com |
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