Moody's ups MDM Bank view to stable

Moody's Investors Service said it changed to stable from negative the outlook on the D bank financial strength rating and the Ba2 long-term local- and foreign-currency deposit ratings of MDM Bank.

The outlook also was changed to stable from negative on the bank's Ba2 senior unsecured and Ba3 subordinated debt ratings. The bank's not-prime short-term local- and foreign-currency deposit rating was affirmed, along with its Aa2.ru national-scale rating and the Aa2.ru national-scale rating on its senior unsecured domestic debt.

The outlook revision reflects the bank's strengthened liquidity profile and the bank's high capitalization level, Moody's said.

The weakening trend of the bank's asset quality still persists with delinquent loans comprising 19.2% of the gross loan book at the end of the first quarter of 2010 and renegotiated loans accounting for another 11.2% of the gross loans at the same date, the agency said.

The bank's financial strength is underpinned by its recurring earnings generation, sound operational efficiency and ample liquidity cushion, Moody's said.

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