The international rating agency has recently placed the ratings of five bonds issues coordinated by Alfa Diversified Payment Rights Finance Co. S.A. (Alfa-Bank’s trust company) on CreditWatch list, with Negative Rating Outlook.

Standard & Poor's reports this was a follow-up on putting Alfa-Bank itself on the same list.

‘These ratings show how the agency feels about the issuer’s financial stability as well as about the existing overcollaterization (which actually ensures a better credit quality of the payment flow) and the other elements of the bond transaction that reduce the risk of state interference and other credit risks related to such sorts of transactions. While estimating the issuer’s financial reliability, we looked into Alfa-Bank’s ability to generate the assets needed for servicing and retiring their bonds throughout their entire circulation period, especially under some financial trouble. What we did today was only the consequence of placing Alfa-Bank’s contractor credit rating on the CreditWatch list with Negative Rating Outlook,’ Standard & Poor's states.