Moody's may cut DeltaCredit Bank

Following application of its joint default analysis methodology and its updated bank financial strength rating methodology to its bank ratings in France, Moody's said it published bank rating results for subsidiaries of those banks located in Russia.

DeltaCredit Bank is a wholly-owned subsidiary of Societe Generale. With the implementation of the refined methodologies for banks in France, Moody's said it re-evaluated parental support, along with any other support elements, for DeltaCredit.

Based on this assessment, the deposit ratings of the bank were placed on review for possible downgrade. These actions reflect the inherent uncertainty of non-explicit parental support and DeltaCredit's relatively weak intrinsic financial strength, the agency said. The review could result in a downgrade in the local-currency deposit rating of more than one notch, Moody's said, and will focus on the likelihood of parental support to be imputed in the bank's deposit and debt ratings.

The bank financial strength rating of DeltaCredit Bank is unchanged at D- and has a stable outlook. The Baa2/prime-2 foreign-currency deposit ratings and the A2 long-term local-currency deposit rating have been placed on review for possible downgrade. The long-term national scale rating is affirmed at Aaa.ru.

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