Standard & Poor’s assesses Souyz

Standard & Poor’s, the international rating agency, came up with the credit ratings of Bank Souyz currently on its CreditWatch list.

‘The CreditWatch status means the bank’s current position is still somewhat uncertain; however, Souyz went through with its recapitalization plans smoothly and managed to change the ownership scheme as well as go for the asset buy-out,’ says Standard & Poor’s credit analyst Viktor Nikolskiy.

Nevertheless, the bank’s own paying capacity is estimated to be very low and is characterized by high credit risks, a significant drop in market capitalization and poor profitability. The bank’s bad debt portfolio worth 20 billion RUR is to be bought by Deposit Insurance Agency within the next six months, which is expected to clear the bank’s balance.

Deposit Insurance Agency has already declared that Bank Souyz’s proposed merger with Sobinbank was postponed indefinitely.

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