Moody’s drops Russian Standard Bank

Moody's Investors Service said it downgraded Russian Standard Bank's long-term foreign- and local-currency deposit ratings and foreign-currency senior debt rating to Caa2 from B3.

The agency also downgraded the bank’s baseline credit assessment and adjusted baseline credit assessments to caa2 from b3, foreign-currency subordinated debt ratings to Caa3 from Caa1 and the rating assigned to the non-viability subordinated security to Ca(hyb) from Caa2(hyb).

All ratings are on review for further downgrade.

The bank's Not-Prime short-term foreign-currency and local-currency deposit ratings were affirmed.

Concurrently, Moody's downgraded the bank's long-term counterparty risk assessment (CR Assessment) to Caa1(cr) on review for further downgrade from B2(cr) and affirmed its short-term CR Assessment of Not-Prime(cr).

At the same time, Moody's Interfax Rating Agency downgraded the national scale long-term deposit rating to B3.ru from Baa3.ru. The NSR carries no specific outlook.

The actions were driven by: (a) Russian Standard Bank's substantial net losses posted in H1 2015 and anticipated until year-end 2015, which reflect its weak net interest income and high provisioning charges against growing problem loans; and (b) the depletion of the bank's capital base, 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.