Moody's rates Novikombank bond B2

Moody's Investors Service said it assigned a B2 long-term global local-currency debt rating to Novikombank's RUB 2 billion senior unsecured regular bond due Nov. 25, 2013.

The outlook is stable.

Any subsequent senior debt issuance by the bank will be rated at the same rating level subject to there being no material change in the bank's overall credit rating, Moody's said.

The rating of B2 was assigned to the following debt instrument

The rating is in line with the bank's global local-currency deposit rating of B2, which is based on a baseline credit assessment of B2.

The rating is constrained by the bank's susceptibility to political risks over the medium-to-long term, relatively high single-name concentrations on both sides of the balance sheet and corporate governance deficiencies, Moody's said.

The rating is underpinned by its strengthening niche franchise, adequate liquidity and stable funding base, and sufficient capitalization and loan loss provisioning levels, the agency said.

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