Moody's reviews Avenue

Moody's Investors Service said it placed on review for downgrade the B3 corporate family and probability-of-default ratings of Avenue Osteuropa GmbH, the parent company of the Avenue Group.

The action was prompted by increased uncertainties regarding the impact of the turmoil in the financial markets on the evolution of the general economic environment in Russia, coupled with Avenue's exposure to the highly cyclical real estate development business, the agency said.

Moody's noted that the ability and willingness of local banks in Russia to provide local companies with sufficient funds to finance growth and day-to-day business have in the recent past been reduced, which may also have an effect on the liquidity position of Avenue.

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