Moody's downgrades Interprombank

Moody's Investors Service said it downgraded Interprombank, JSCB's long-term deposit ratings to Caa1 from B3, baseline credit assessment and adjusted baseline credit assessment to Caa1 from B3, long-term counterparty risk assessment to B3(cr) from B2(cr) and long-term counterparty risk ratings to B3 from B2.

The agency also affirmed the bank's not-prime short-term deposit ratings, not-prime(cr) short-term counterparty risk assessment and not-prime short-term counterparty risk ratings.

The outlook was changed to negative from stable.

The downgrades reflect the increased uncertainty over the bank's future asset performance, in particular, loans granted to a limited number of economically related borrowers from the oil and gas sector, Moody's said.

The uncertainty over the bank's loan book performance has increased following the bankruptcy filing of Antipinsky Oil Refinery, which is among the largest in Russia and was previously controlled by one of Interprombank's largest shareholders, the agency said.

The negative outlook reflects expectations of additional negative pressure on the bank's solvency metrics, particularly increased needs for loan loss provisions to address asset risks and possible deterioration in earnings and operating efficiency, Moody's said.

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