Moody's rates Petrocommerce bonds Ba3

Moody's Investors Service said it assigned a Ba3 long-term global local-currency debt rating to Petrocommerce Bank's senior unsecured debt. The debt includes a RUB 5 billion senior unsecured regular bond due Dec. 21, 2014; RUB 3 billion senior unsecured regular bond due July 6, 2011; RUB 3 billion senior unsecured regular bond due Aug. 22, 2012; and RUB 3 billion senior unsecured regular bond due Aug. 22, 2012.

The outlook is negative.

Any subsequent senior debt issuance by Petrocommerce 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 ratings are in line with Petrocommerce's global local-currency deposit rating, which is in turn based on the bank's D- bank financial strength rating.

The ratings are constrained by the bank's high level of problem loans, which negatively affect the bank's profitability and efficiency, the agency said.

The ratings are supported by the high capital adequacy maintained by the bank despite the severe stress, a sizeable cushion of liquid assets and its strong links with Lukoil and IFD Kapital Group, Moody's added.

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