Moody's cuts International Industrial

Moody's Investors Service said it downgraded International Industrial Bank's long-term debt ratings to Caa2 from B3. The Caa2 long-term ratings have been placed on review with direction uncertain.

The downgrade captures the fact that the bank has defaulted on its customer transaction obligations upon failing to generate sufficient cash from its loan book to meet such obligations and refinance its short-term funding from the Central Bank of Russia, totaling to RUR31 billion as of June 1, Moody's said.

The agency said it understands that the bank is currently negotiating the rescheduling of its current financing with the bank under new terms and conditions.

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