Bulletin: Raiffeisen Bank International's Risks From Russian Operations Remain Elevated After Russian Court Decision

FRANKFURT (S&P Global Ratings) Sept. 9, 2024--S&P Global Ratings said today that reputational, sanction, and regulatory intervention risks remain elevated for Raiffeisen Bank International AG (RBI; A-/Negative/A-2) after a Russian court's decision that will delay further efforts to sell or materially reduce a stake in its Russian subsidiary, AO Raiffeisenbank. We continue to believe that RBI will eventually exit from its sizable Russian operations. In our base-case projections for the next two years, we exclude the subsidiaries in Russia and Belarus from RBI's financial figures. That said, nonfinancial risks related to RBI's operations in Russia are key downside triggers to the rating. On Sept. 5, 2024, RBI disclosed that its planned sale of a controlling stake in AO Raiffeisenbank would

...FRANKFURT (S&P Global Ratings) Sept. 9, 2024--S&P Global Ratings said today that reputational, sanction, and regulatory intervention risks remain elevated for Raiffeisen Bank International AG (RBI; A-/Negative/A-2) after a Russian court's decision that will delay further efforts to sell or materially reduce a stake in its Russian subsidiary, AO Raiffeisenbank. We continue to believe that RBI will eventually exit from its sizable Russian operations. In our base-case projections for the next two years, we exclude the subsidiaries in Russia and Belarus from RBI's financial figures. That said, nonfinancial risks related to RBI's operations in Russia are key downside triggers to the rating. On Sept. 5, 2024, RBI disclosed that its planned sale of a controlling stake in AO Raiffeisenbank would be further delayed, following the Arbitration Court of the Kaliningrad Region's decision. The court imposed an immediate transfer ban on RBI's 100% ownership stake in AO Raiffeisenbank. RBI aims to challenge...

Bulletin