Moody's affirms Moscow Mortgage

Moody's Investors Service said it affirmed the Ba2/not-prime long-term and short-term local- and foreign-currency deposit ratings, as well as the Ba2 long-term local-currency debt rating of Moscow Mortgage Agency.

The outlook is stable.

The ratings are based on the company's audited financial statements for 2010, Moody's said.

The ratings are constrained by the limitations of the company's niche market, predominantly under the city of Moscow's funding program, the agency said. This renders its business potentially exposed to changes in the strategic priorities of the city's government, Moody's said.

These constraints also result in weak revenue generation, compared with independent market players, the agency said.

Moscow Mortgage could find it difficult to withstand competition outside of its core segment due to its historically limited experience of operating in a competitive environment, as illustrated by the weak performance of its corporate loan book, Moody's added.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.