MOSCOW (Standard & Poor's) Oct. 15, 2008--Standard & Poor's Ratings Services said today that it had placed its 'B' long-term counterparty credit and 'ruBBB+' Russia national scale ratings on West Siberian Commercial Bank on CreditWatch with developing implications. At the same time, the 'C' short-term rating was affirmed.
"The CreditWatch placement follows the announcement that a 50.2% stake in the bank will be acquired by two local regional governments," said Standard & Poor's credit analyst Victor Nikolskiy. "Uncertainties regarding the financial condition of the bank also played a significant role in the CreditWatch placement."
The Tyumen Oblast (not rated) and Yamal-Nenets Autonomous Okrug (AO; BB+/Stable/--; Russia national scale 'ruAA+'), the two regional governments acquiring West Siberian, have not disclosed the price and structure of the acquisition.
We consider that the acquisition could positively affect the bank's liquidity, financial flexibility, and capitalization, and offer some protection in the current domestic financial crisis.
At the same time, the sudden change of ownership and the difficult operating environment Russian banks are experiencing create uncertainties about West Siberian's current creditworthiness, which could lead us to lower the ratings on the bank.
"We will resolve the CreditWatch placement upon the completion of the acquisition and our evaluation of its impact on the bank," said Mr. Nikolskiy.
This will include a review of the bank's financial condition, changes in strategy and management, and most importantly, the capacity and willingness of the majority shareholders to provide financial support, including new capital and funding resources. |
