On changed requirements to minimum rating level of securities issuer (issue) included in Bank of Russia Lombard List
Pursuant to the decision of Bank of Russia Board of Directors dated 5 July 2016, requirements to a minimum rating level of the securities issuer (issue) for some categories of securities reincluded in the Bank of Russia Lombard List have been changed.
For example, on 8 July 2016, minimum levels for a long-term international credit rating of the issuer (issue) of bonds of legal entities — residents of the Russian Federation, as well as of debt issue-grade securities issued by legal entities — non-residents of the Russian Federation outside the Russian Federation included in the Bank of Russia Lombard List were increased from В- / В3 to В+ / В1 by classification of S&P Global Ratings, Fitch Ratings / Moody’s Investors Service rating agencies.
This decision was taken to improve the quality of securities included in the Bank of Russia Lombard List. At the same time, the reduction of the structural deficit of the banking sector liquidity, a reduced demand from credit institutions for refinancing operations and the existence with them of substantial free market collateral were taken into consideration.
The above decision shall not apply to mortgage-backed bonds and bonds of mortgage agencies included in the Bank of Russia Lombard List1. Also, it shall not cover those issues of bonds which have already been included in the Bank of Russia Lombard List as of 8 July 2016.
The decision taken will not seriously affect the situation with the banking sector liquidity.
1 Information on minimum rating levels of mortgage-backed bonds issuer (issue) and mortgage bonds of mortgage agencies included in the Bank of Russia Mortgage List is available in the Bank of Russia Information Notice dated 10 October 2012 ‘On Bank of Russia Ordinance No.
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