Moody's: Bank Petrocommerce view negative

Moody's Investors Service said it changed the outlook on Bank Petrocommerce (Russia) to negative from stable and affirmed its Ba3 senior unsecured debt rating.

The action is driven by concerns that the worsening economic conditions in Russia are likely to translate into a deterioration of Petrocommerce's financial fundamentals, according to the agency.

"Moody's believes that the credit losses expected to materialize during 2009 will erode a substantial portion of Petrocommerce's capital base, as the current level of provisioning by the bank is regarded by Moody's as not sufficient," Semyon Isakov, a Moody's analyst, said in a statement.

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