Moody's: MDM unaffected

Moody's Investors Service said that MDM Bank's board of directors made a recommendation at the annual general shareholders' meeting not to pay dividend on ordinary shares and on all types of preferred shares for the year 2009.

Moody's said that the non-payment of dividends on both ordinary and preferred shares, if approved by the banks' shareholders, will not have any effect on the bank's D/Ba2/Not Prime bank financial strength rating and deposit ratings, and its Ba2/Ba3 senior unsecured and subordinated debt ratings.

While the holders of the largest stakes in the bank - Sergey Popov and Igor Kim, owning 56.3% and 11% of total voting shares, respectively, as of April - had stated that they would not withdraw any capital from the bank in the form of dividends for 2009, dividend payment on preference shares still could be awarded, the agency added.

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