Moody’s acts on two Russian banks

Moody’s Investors Service said it affirmed the long-term senior unsecured local currency debt ratings of Bank Zenit and SME Bank and changed the outlooks on these ratings to negative from stable of Bank Zenit and SME Bank.

In its outlook change for Bank Zenit, Moody’s cited in a press release, the bank’s moderate exposure to loan segments and industries most vulnerable to the current economic slump, and its weak pre-provision revenue generation which provides little defense against increased provisioning.

For SME Bank, the agency noted SME’s focus on loans to small companies and its relatively weak pre-provision revenue generation.

Both banks face the risk of capital erosion, Moody’s 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.