Moody's cuts Eurasian Development Bank

Moody's Investors Service said it downgraded the long-term ratings, including the issuer rating, the foreign-currency senior unsecured debt and the foreign-currency senior unsecured medium-term note program rating, of the Eurasian Development Bank to B3/(P)B3 from Baa1/(P)Baa1.

The long-term ratings remain on review for further downgrade.

“The decision to downgrade EDB's ratings to B3 stems from sharply rising risks to the bank's liquidity and funding, member support, and capital adequacy as a result of Russia's (Ca negative) invasion of Ukraine (Caa2 review for downgrade) and the international response to it. The downgrade reflects a stark worsening in EDB's operating environment following the increased severity of sanctions on Russian and Belarussian entities. With Russia the largest and Belarus (Ca negative) the third largest shareholders in EDB, and significant asset exposure to borrowers in the two countries, the bank faces heightened uncertainty about the application and scope of sanctions,” Moody’s said in a press release.

© 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.