Moody's downgrades Russian financial institutions

Moody's Investors Service said it took rating actions on Sberbank, Agency for Housing Mortgage Lending OJSC and Vnesheconombank following the weakening of Russia's credit profile, as reflected by Moody's downgrade of Russia's government bond rating to Baa3 from Baa2 on Jan. 16 and placing it on review for further downgrade.

The agency downgraded Agency for Housing Mortgage Lending’s long-term issuer ratings to Baa3 from Baa2, short-term issuer ratings to P-3 from P-2 and senior bonds and backed senior bonds to Baa3 from Baa2.

Sberbank’s senior bonds and backed senior bonds were downgraded to Baa3 from Baa2.

Vnesheconombank’s long-term issuer ratings were downgraded to Baa3 from Baa2.

The affected ratings remain on review for downgrade. The agency said this is because of the review for downgrade of the sovereign debt rating and the considerations that Moody's stated in a rating action last month on Russian financial institutions regarding the significant funding, asset quality and profitability pressures that they now face as a result of Russia's challenging operating environment for the medium term.

© 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.