Bulletin: Raiffeisen Bank International's Russian Subsidiary Risks Remain Despite Proposed Capital Upstream

FRANKFURT (S&P Global Ratings) Dec. 20, 2023--S&P Global Ratings said today that Austria-based Raiffeisen Bank International AG's (RBI; A-/Negative/A-2) proposed capital-in-kind upstreaming from its Russian subsidiary in first-quarter 2024 does not alter our view of the material risk concentration stemming from its Russian operations. As such, the targeted transaction does not immediately affect our rating on RBI. The planned transaction is pending various conditions, including approvals by Austrian regulators and antitrust authorities, international sanctions compliance, and Russian authorities. We acknowledge that the proposed transaction would somewhat reduce direct equity investment from Raiffeisen Banking Group (RBG) and its core subsidiary RBI, which is currently locked in Russia, thereby supporting our unchanged view that RBG will post solid profits in 2023 and

...December 20, 2023 FRANKFURT (S&P Global Ratings) Dec. 20, 2023--S&P Global Ratings said today that Austria-based Raiffeisen Bank International AG's (RBI; A-/Negative/A-2) proposed capital-in-kind upstreaming from its Russian subsidiary in first-quarter 2024 does not alter our view of the material risk concentration stemming from its Russian operations. As such, the targeted transaction does not immediately affect our rating on RBI. The planned transaction is pending various conditions, including approvals by Austrian regulators and antitrust authorities, international sanctions compliance, and Russian authorities. We acknowledge that the proposed transaction would somewhat reduce direct equity investment from Raiffeisen Banking Group (RBG) and its core subsidiary RBI, which is currently locked in Russia, thereby supporting our unchanged view that RBG will post solid profits in 2023 and would maintain a comfortable capital headroom. However, until RBG executes an orderly exit from Russia,...

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