OREANDA-NEWS. On November 15, 2013, international rating agency Standard & Poor's affirmed Bank Petrocommerce's ratings at “B+/B” and revised its outlook from “Stable” to “Developing” in the view of Otkritie Financial Corporation's plans to acquire it. The agency claims that ratings might be upgraded if the Bank's integration in FC Otkritie is a success and have positive influence on its financials.

The transaction is planned to be completed by the end of 2014 and is subject to regulatory approval. FC Otkritie will issue 19.9% additional shares in favor of IFD Kapital, and the issue proceeds will be used to acquire at least a 95% stake in Bank Petrocommerce, including 79.3% of shares owned by IFD Kapital, and minority shareholdings. The additional share issue of FC Otkritie will be placed at the price of at least RUB 15 bln. The acquisition price of Bank Petrocommerce will amount to RUB 18.5 bln.

Prior to the completion of the deal, the current shareholders of the Bank will undertake a number of measures to improve its balance sheet and to increase its capitalization. In particular, by the end of 2013, IFD Kapital will purchase a portion of problem loans and provide the Bank with a subordinated loan in the amount of RUB 10 bln, which after CBR's approval might be recognized in additional capital.

In rating agency's point of view, these measures “should support capitalization and improve profitability” of the Bank.

S&P also notices that Bank Petrocommerce's cooperation with LUKoil, one of the Russia's major oil companies, has positive effect on the Bank's business position and funding. “We understand that providing good-quality services to LUKoil will remain an important function for Bank Petrocommerce”, say S&P's analysts, and add that “the new ownership structure doesn't materially hamper our assessment of the Bank's liquidity position as strong”.