Moody’s might cut VTB Capital

Moody's Investors Service said it placed on review for downgrade the local- and foreign currency long-term bank deposit ratings and counterparty risk assessments of VTB Capital plc.

The agency also affirmed VTB's short-term deposit ratings of Not Prime and the short-term counterparty risk assessment of Not Prime(cr).

Moody’s said the action reflects the changed structure of the bank's liabilities following the partial repayment of its subordinated debt.

“The action reflects the likelihood of higher loss-given-failure for the bank's depositors and senior operating obligations as a result of reduced subordination protecting these instruments from loss,” the agency said in a news release.

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