Russia-based Vnesheconombank's ratings affirmed with stable outlook - S&P

MUMBAI (Thomson Financial) - Standard & Poor's Ratings Services said it has affirmed its 'BBB+' long-term foreign currency and 'A-' long-term local currency issuer credit ratings on Russia-based Vnesheconombank (VEB) with a stable outlook.

The ratings on state-owned VEB are supported by strong sovereign support and adequate albeit declining, levels of capitalization, liquidity, and profitability, S&P said.

The 'A-2' short-term local and foreign currency issuer credit ratings on VEB was also affirmed, S&P said.

The rating agency said a satisfactory level of capitalisation provided by The Russian Federation, the bank's owner, underlines the bank's clear public role.

The ratings are constrained, however, by the ratings on VEB's sovereign owner, S&P said.

S&P added VEB's loan portfolio is characterised by high loan concentration in a few sectors in the Russian economy. [e-mail] net/gp COPYRIGHT Copyright AFX News Limited 2007. All rights reserved. The copying, republication or redistribution of AFX News Content, including by framing or similar means, is expressly prohibited without the prior written consent of AFX News.