Moody's ups, lowers DeltaCredit

Moody's Investors Service said it upgraded the bank financial strength rating of DeltaCredit Bank to D from D- and downgraded the bank's global scale long-term local-currency deposit rating to A3 from A2, concluding the review that began on May 11.

The bank's Baa2/Prime-2 foreign-currency deposit ratings and Aaa.ru national scale rating are confirmed.

The outlook is stable.

The upgrade of the bank financial strength rating reflects the bank's improved franchise, management's demonstrated ability to withstand competitive pressure, the continued sound financial fundamentals and risk management, the agency said.

The rating is constrained by the still immature mortgage business and its untested performance in Russia, potential credit risks and threats to the bank's competitive advantages, the loan book performance in an economic downturn and dependence on wholesale markets, which could be shuttered.

The global local-currency deposit rating incorporates the baseline credit assessment of Ba2 and high probability of parental support from Societe Generale, Moody's said.

© 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.