Moody's upgrades some Russian Banks

Moody's Investors Service said revised its rating methodology for assigning foreign-currency country bond ceilings, which resulted in the upgrades to the foreign-currency bond ceilings of a number of countries. The higher ceilings reflect Moody's view that in many countries, even if the government were to default on its own foreign-currency debt, the probability of a foreign-currency moratorium is less than 100%.

Most of the foreign-currency debt and foreign-currency issuer ratings that are being upgraded were previously constrained at the old foreign-currency debt ceilings, reflecting Moody's earlier view of the risk that such obligations could be captured by a foreign-currency payments moratorium in the event that the government defaulted on its own foreign currency debt. Following the upgrades, a number of these ratings are no longer constrained by this risk.

Accordingly, the senior unsecured debt ratings of Bank of Moscow, Gazprombank, Impexbank JSC, Sberbank and Vneshtorgbank were upgraded to A2 from A3 and the senior unsecured debt rating of Russian Agricultural Bank was upgraded to A3 from Baa1.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.