Moody's rates Eurokommerz B2

Moody's Investors Service said it assigned Eurokommerz Holding Ltd. global scale ratings of B2 long-term and Not Prime short-term foreign- and local-currency issuer ratings. Moody's Interfax Rating Agency assigned an A3.ru long-term national scale credit rating.

The outlook for the long-term ratings is stable.

Moody's said the B2/NP global scale ratings reflect Eurokommerz' global default and loss expectation, while the A3.ru national scale rating reflects the standing of the company's credit quality relative to its domestic peers.

The assigned ratings reflect the company's sound market positions in its target segments with reasonable growth potential, management's ability to develop the company and its market positions, sound profitability, moderate risk appetite, good asset quality and adequate liquidity management and capitalization, the agency said.

The ratings are constrained by the potential for rapid growth to give rise to credit and operating risks, limited operating history, balance sheet concentrations, substantial foreign exchange and interest rate risks, and uncertainty about long-term sources of capitalization, Moody's said. Concerns also include a high reliance on wholesale market funding and lack of regulation.

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