Gazprombank Converted to Junk (no joke)

by **bratticus** » Wed 14 Jan 2009, 13:48:30

Bank Loses Investment Grade

14 January 2009Gazprombank, the country's third-largest bank, saw its credit rating lowered to "junk" status by Standard & Poor's on Tuesday.

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Gazprombank is 42 percent owned by Gazprom and is the main provider of financial services to the gas giant.

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by **Gerben** » Wed 14 Jan 2009, 15:57:49

The ruble was also devaluated recently. Russia needs the gas money.

by **dissident** » Wed 14 Jan 2009, 19:18:36

Like it needed it in 1998, right?

by **Tyler_JC** » Wed 14 Jan 2009, 19:22:34

dissident wrote:Like it needed it in 1998, right?

Just like in 1998, global energy prices have crashed.

Russia needs every export dollar it can get. The weapon of oil only works when you can afford to shut off the pipeline.

If you can't afford to shut it off, you risk damaging yourself.

by **dissident** » Wed 14 Jan 2009, 20:58:08

Keep on repeating that "oil weapon" phrase over and over as if it means anything. It's gas not oil and Russia has a right to get market price for it. Do some research about what happened in 1998, in particular about rouble devaluation. The Russian recovery in the 1998-2004 period had nothing to do with oil and gas prices but everything to do with rouble devaluation.

BTW, the claim in this thread is a load of crap: Link

But that is not surprising coming from bratticus, the global warming denier.

by **MOCKBA** » Thu 15 Jan 2009, 22:21:42

Gazprom is heavy in debt and would record significant losses in 2009. I question Gazprom ability to service its debt, but hey it is just me... Gazprombank is "pump and dump" entity for Gazprom. Downgrade is no surprise really.

What I believe would happen in 2009 - Russian government would pledge Stabilization Fund to guarantee Gazprom debt... only the Fund would be totally depleted sometimes in Q4 2009 - Q2 2010. What after that? Who knows? I think 1998 would be viewed in Russia as a mild bump on the road....

Oh and BTW NG prices Gazprom is getting are tied to oil prices with about 6-9 months delay. Gazprom contribution to Russia (as in taxes) is almost an order smaller then export duties that oil companies used to pay. Recent russian prosperity was fueled almost entirely by excessive oil export revenues. That changed quite rapidly...

Gazprombank Converted to Junk (no joke)

Gazprombank Converted to Junk (no joke)

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Re: Gazprombank Converted to Junk (no joke)

Re: Gazprombank Converted to Junk (no joke)

Re: Gazprombank Converted to Junk (no joke)

Re: Gazprombank Converted to Junk (no joke)

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