Moody’s lifts Investment Trade Bank

Moody’s Investors Service said it upgraded Investment Trade Bank’s long-term global local- and foreign-currency deposit ratings to Caa3 from Ca and assigned a stable outlook to these ratings.

The agency also said it affirmed the bank’s not-prime short-term local- and foreign-currency deposit ratings.

Moody’s also said it confirmed the bank’s baseline credit assessment and adjusted baseline credit assessment of Ca.

The agency also said it upgraded the bank’s long-term counterparty risk assessment to Caa2(cr) from Caa3(cr) and affirmed the bank’s short-term counterparty risk assessment of not-prime(cr).

The upgrades follow the completion of a review with direction uncertain initiated by Moody’s in August as a result of news that state Deposit Insurance Agency had taken Investment Trade Bank into temporary administration, Moody’s said. In August, the agency initially downgraded the bank’s ratings.

The final decision by regulators is that the bank will be subject to a financial rehabilitation procedure, which will involve Transkapitalbank as an investor bank and will be supported by financial facilities provided by the Deposit Insurance Agency, the agency said.

The upgrade reflects the moderate degree of government support and takes into consideration the substantial magnitude of the financial support channeled from the insurance agency to the bank either directly or via Transkapitalbank, Moody’s said.

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