Moody's may cut Gazprombank

Moody's Investors Service said it placed the D- bank financial strength rating of Gazprombank on review for a possible downgrade. The agency also said it affirmed the bank's Baa2 long-term local-currency deposit and senior unsecured debt ratings, Baa2 foreign-currency deposit and senior unsecured debt ratings and prime-2 short-term foreign-currency deposit ratings, along with its Aaa.ru national scale rating for deposits.

The outlook is stable.

The review is prompted by recent news that Gazprombank incurred RUR90 billion in losses from foreign-exchange derivatives and securities in the second half of 2008, Moody's said.

Moody's said it believes the bank's ability to withstand increased risk from deteriorating operating environment , notably from elevated credit and market risks, has declined significantly.

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