Moody's cuts Finance Leasing to Ba3

Moody's Investors Service said it downgraded the long-term global-scale foreign- and local-currency issuer and debt ratings of Finance Leasing Co. to Ba3 from Ba2, along with the long-term national-scale rating to Aa3.ru from Aa2.ru. The agency also affirmed its not-prime short-term ratings.

The outlook is negative.

The downgrades have been prompted by the recent difficult conditions in the Russian air carrier sector, which have been weighing on the company's asset quality and performance of its leasing book, Fitch said.

In addition, rapid leveraging of its balance sheet over the past year has not been adequately supported by asset-liability management systems, the agency said, and has exposed the company to refinancing risks.

Moody's also said corporate governance issues may pose a threat to the company's asset quality and liquidity profile.

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