Moody’s might cut Orient Express Bank

Moody's Investors Service said it placed on review for downgrade the B3 long-term foreign and local currency deposit ratings and long-term B2 counterparty risk ratings of Orient Express Bank.

The bank's baseline credit assessment at b3, adjusted baseline credit assessment at b3 and long-term counterparty risk assessment at B2(cr) were also placed on review for downgrade.

The agency said the action reflects concerns regarding the dispute and conflict between the two main shareholders of Orient Express, which became public recently.

Moody’s said the conflict has resulted in the sudden change of the bank's senior management, including its chief executive officer, earlier this month, and could disrupt a planned additional share issuance of about RUB 5 billion.

If not resolved soon, the shareholders' conflict may cause volatility of the customer deposits, in particular, corporate and large individual clients, owing to uncertainty with regards to the bank's corporate governance, the agency said.

© 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.