The Bank of Russia within the framework of implementing a countercyclical approach to the formation of the Lombard list of the expected preservation of surplus of liquidity in the medium term and a sufficient amount of collateral from credit institutions increases the minimum level of credit rating of issue (Issuer) number of categories of bonds included in the Lombard list, according to the regulator.
From 1 January 2018 for bonds of constituent entities of the Russian Federation, bonds of municipalities bonds of legal entities — residents of the Russian Federation that are not credit institutions with a minimum credit rating of issue (Issuer) is set at not less than “A(RU)” / “ruA” on the classification of credit rating agencies ACRA (AO) / AO “Expert RA”2, respectively.
When deciding on the inclusion of these bonds in the Lombard list also takes into account the results of the Bank of Russia’s assessment of the credit quality of these bonds (the creditworthiness of their issuers), the conditions of their placement and circulation, as well as other essential circumstances.
The decision to raise the minimum level of credit rating to include in the Lombard list of bonds not apply to bonds included in the Lombard list until January 1, 2018.
At the same time retaining the possibility of inclusion in the Lombard list of bonds of constituent entities of the Russian Federation, bonds of municipalities bonds of legal entities — residents of the Russian Federation that are not credit institutions, issues (issuers) who do not have credit ratings that meet the requirements of the Bank of Russia, in the event that the performance of the obligations secured by state guarantees of the Russian Federation or the joint guarantee of JSC “AIZhK” (for mortgage-backed bonds).
“The Bank of Russia carries out constant monitoring of availability in the banking sector free collateral for refinancing credit institutions and, if necessary, ready to respond flexibly to the changing market situation”, – said the Central Bank.