Moody's rates B&N Bank bond B2

Moody's Investors Service said it assigned a B2 long-term global local-currency debt rating to B&N Bank's senior unsecured RUB 1 billion bond issuance maturing in 2013.

The outlook is stable.

Any subsequent senior debt issuance by the bank will be rated at the same rating level subject to there being no material change in the bank's overall credit rating, the agency said.

The assigned rating is in line with B&N Bank's global local-currency deposit rating, which is in turn based on the bank's E+ bank financial strength rating. The deposit and debt rating of B2 does not incorporate any uplift either from shareholder or from systemic support, Moody's added.

The rating is primarily constrained by the challenging operating environment in Russia, relatively high concentrations in the loan portfolio and the current pressure on profitability, the agency said.

The rating also takes into account the bank's good visibility in the retail-deposit-taking market, adequate geographical diversification and a sound liquidity profile, Moody's said.

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