Dagong gives Russia's Gazprombank 'A-' rating

China's Dagong Global Credit Rating Co Ltd has assigned Russia's Gazprombank with an "A-" foreign and local currency credit rating with a stable outlook, according to the rating agency's statement on Wednesday.

The rating was one notch below Russia's sovereign rating and at the same level as the rating of the United States.

Dagong noted that Gazprombank's wealth creation capability remains relatively strong thanks to its solid market standing and the recovery of the debt repayment environment, albeit facing short term headwinds due to near-term economic deterioration in Russia as well as the sanctions imposed by the US and the European Union.

This is the first time a Chinese rating agency has been entrusted by a financial institution in a major economy to give a credit rating service.

A good rating from a Chinese rating agency is critical for Gazprombank as it was reported to sell renminbi-denominated bonds on China's domestic market.