Currency converter
^
All news
News Search Topics
ОК
Use filter
You can filter your feed,
by choosing only interesting
sections.
Loading

S&P assigns junk rating "D" to distressed Peresvet bank linked with Moscow Patriarchate

October 24, 2016, 20:27 UTC+3

On October 18, the Peresvet bank that has been historically linked with the Moscow Patriarch’s Office, introduced the limit of $1,601 on allocation of funds to its clients

Share
1 pages in this article

MOSCOW, October 24. /TASS/. Standard & Poor's downgraded credit ratings of distressed Peresvet bank to the default level "D", the international rating agency said on Monday. The Bank earlier had "CCC-" long-term credit rating and "C" short term rating, S&P said.

"The downgrade reflects the regulatory action taken by the Central Bank of Russia (CBR) in regards to its intervention and appointment of a temporary administration at Peresvet Bank on October 21, 2016," S&P said in its press release.

The Bank of Russia also suspended authority of Peresvet’s management team. "We consider this to be evidence of Peresvet Bank's failure to meet its financial obligations, as a result of the liquidity crisis that the bank has been facing following a series of media publications," S&P said.

Further rating actions in respect of the distressed bank will depend on the next steps taken by the Bank of Russia and financial rehabilitation procedures to take place in the coming weeks, the rating agency said.

The Central Bank has switched the Peresvet bank to the Banking Electronic Speed Payment System (BESP) again.

"They have switched it but it is rather an exception because the Central Bank switches troubled banks to BESP very seldom," a source said.

The Central Bank established BESP for the transfer of urgent payments in rubles by its clients (credit and non-credit institutions).

According to the Central Bank’s rules, the regulator temporary switches off credit institutions from BESP if they fail to form required reserves. In case a bank’s license is revoked it also excluded from BESP.

On October 18, the Peresvet bank that has been historically linked with the Moscow Patriarch’s Office, introduced the limit of 100,000 rubles ($1,601) on allocation of funds to its clients.

On October 20, the bank’s failed to place its bonds worth 2 bln rubles ($32 mln) due to lack of demand among the investors.

On October 21, the Central Bank announced that a temporary administration has been appointed in the bank.

Show more
Share
In other media
Реклама
Реклама