RZB Hybrid’s Ratings Cut at S&P on Risk of Coupon Non-Payment
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Raiffeisen Zentralbank Oesterreich AG’s junior bonds were downgraded by Standard & Poor’s, which cited concern that a clause blocking interest payments on the notes may be triggered by losses at its international arm.
The ratings were reduced one level to BB- from BB, and S&P said it may cut again by as much as another two levels. The New York-based firm cited the “difficult market conditions, especially in Russia and Ukraine” experienced by Raiffeisen Bank International AG, in which RZB owns 61 percent.