MOSCOW (Standard & Poor's) Feb. 18, 2015--Standard & Poor's Ratings Services
said today that it had lowered its long- and short-term counterparty credit
ratings on Russia-based Commercial Bank Sudostroitelny Bank LLC to 'D/D' from
'CCC/C'. At the same time, we lowered our Russia national scale rating on
Sudostroitelny Bank to 'D' from 'ruB-'.
We removed all the ratings from CreditWatch negative where we placed them on
Jan. 22, 2015, and subsequently withdrew them.
We lowered the ratings on the bank and then withdrew them following the
Russian Central Bank's revocation of Sudostroitelny Bank's banking license on
Feb. 16, 2015, and Sudostroitelny Bank's placement under a temporary
administration, which will manage the bank until the court decides on the
timing and other issues concerning the bank's bankruptcy and liquidation.
We understand the central bank withdrew Sudostroitelny Bank's license because
of Sudostroitelny Bank's inability to process transactions and meet its
financial obligations, as well as its failure to abide with the laws
regulating banking activity.
We understand that all payments are frozen as a result of the regulator's
intervention and that, as a result, the bank is currently unable to fulfill
its obligations according to the terms agreed with customers.
We have therefore lowered all our ratings on Sudostroitelny Bank to 'D' and
withdrawn all the ratings, given our view that the bank will be liquidated and
therefore will cease to exist under its current form.