Moody's cuts International Industrial Bank

Moody's Investors Service said it downgraded the long-term local- and foreign-currency debt and deposit ratings of International Industrial Bank to C from Caa2. The bank's E bank financial strength rating and not-prime short-term local- and foreign-currency deposit ratings were affirmed. All ratings are now at their lowest possible levels.

The outlook is stable.

The downgrade reflects an expectation that the bank's senior unsecured creditors will incur a loss of more than 50%, with the exception of private individuals with deposits at the bank up to RUB 700,000, Moody's said.

The downgrade was triggered by the withdrawal of the bank's banking license by the Central Bank of Russia due to misrepresentation of financial reporting figures and inability to meet its obligations to creditors, the agency said.

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