S&P Global Ratings November 3, 2017, downgraded the Issuer credit rating of PJSC “Promsvyazbank” from “BB” to “B+” and placed it in the СreditWatch Negative list (“ratings on review with negative expectations”). Short-term credit rating of the Bank was affirmed at “B”.
“The downgrade reflects our view of weakening the business position of PSB in connection with a long negative information background around it, tightening regulatory requirements, uncertainty of the development strategy and the departure of several senior executives in recent months. We expect that in the coming months, PSB may be forced to sell some profitable assets with the aim of fulfilling regulatory requirements to the base capital. As of 1 October 2017 figure H1.1 PSB was only of 6.49%, whereas it is expected that from 1 January 2018, the minimum allowable level for systemically important banks will increase from 6.1% to 7,025%. We also note a recent report by the PSB and Bank “the Renaissance” that their merger was postponed”, – is spoken in the message of rating Agency.