ACRA withdraws credit ratings of Eurobonds issued by «Bank Otkritie Financial Corporation» (PJSC)

Credit rating rationale. The withdrawal of credit ratings assigned to three issues of Eurobonds of «Bank Otkritie Financial Corporation» (Public Joint-Stock Company) (ISIN: XS0944741833, XS0940730228, XS0776121062) reflects the complete write-down of the subordinated loans on November 29, 2017, which were granted to the Bank using the funds raised as a result of the issues of the above mentioned securities.

Prior to the withdrawal, credit ratings of the above three issues were at D(RU).

The credit rating of Bank Otkritie reflects its moderately low standalone creditworthiness combined with a high level of support from the state. The rating takes into account the appointment of a temporary administration to the Bank by the Bank of Russia undertaking to ensure the Bank’s financial stability and guaranteeing its business continuity, which mitigates short-term risks of a significant deterioration of the Bank’s financial position. In view of the above, ACRA considers the subordinated debt separately from any other obligations of the Bank to its creditors.

Issue highlights

Regulatory disclosure

The credit rating has been assigned under the national scale for the Russian Federation and is based on the Methodology for Assigning Credit Ratings to Individual Issues of Financial Instruments under the National Scale of the Russian Federation and the Key Concepts Used by the Analytical Credit Rating Agency Within the Scope of Its Rating Activities.

For the first time, the credit rating of subordinated bonds of «Bank Otkritie Financial Corporation» (Public Joint-Stock Company) (actual issuers: BANK FINANCE DAC, OFCB Capital Plc) was published on September 20, 2017.

The assigned credit rating is based on the data provided by «Bank Otkritie Financial Corporation» (Public Joint-Stock Company), information from publicly available sources, as well as ACRA’s own databases. The credit rating is solicited, and «Bank Otkritie Financial Corporation» (Public Joint-Stock Company) participated in its assignment.

No material discrepancies between the provided data and the data officially disclosed by «Bank Otkritie Financial Corporation» (Public Joint-Stock Company) in its financial statements have been discovered.

ACRA provided additional services to «Bank Otkritie Financial Corporation» (Public Joint-Stock Company). No conflicts of interest were discovered in the course of credit rating assignment.