LONDON, March 28 Russia's banks are likely to
see "modest" pressure on their credit ratings, Standard and
Poor's said on Friday, if the country's economy slows in the
wake of Ukraine crisis sanctions imposed by the United States
"Our base-case scenario covers a modest further slowdown in
the Russian economy, with some stabilisation of the rouble at
the current lower levels," S&P said in a new report.
"Asset quality, profitability, and potentially liquidity are
set to deteriorate with generally moderate pressure on our
ratings on Russian banks. However, for small banks, we expect a
more pronounced impact on their financial profiles."
S&P added that the pressure would be greater if the tensions
over Ukraine became more intense and that, in that scenario,
even "certain larger banks with already-thin capital positions",
were likely to be affected.
(Reporting by Marc Jones; Editing by Alison Williams)