Moody's cuts Promsvyazbank view to negative

Moody's Investors Service said it changed the outlook on the D bank financial strength rating and Ba2 long-term global local- and foreign-currency deposit ratings of Promsvyazbank (Russia) to negative from stable. The outlook on the bank's senior unsecured debt rating of Ba2 and the bank's subordinate debt rating of Ba3 also was changed to negative from stable.

This action is driven by concerns about the potential impact of the enduring economic downturn in Russia on the bank's asset quality and financial performance, which is likely to exert further negative pressure on the bank's capital levels, Moody's said.

Although its credit underwriting standards have been satisfactory to date, the credit losses and loan loss provision charges are likely to increase going forward, the agency said. This reflects the overall deterioration of the operational and economic environment in Russia and the high levels of concentration in the bank's loan book, the agency 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.