Moody's: Home Credit view negative

Moody's Investors Service said it changed to negative from stable the outlook on Home Credit & Finance Bank's Ba3 long-term local- and foreign-currency deposit ratings and Ba3 long-term senior unsecured rating.

The Not Prime short-term local- and foreign-currency deposit ratings were affirmed.

The outlook was stable.

"The bank's business model of wholesale-funded consumer lender is possibly one of the worst affected under current circumstances of tightened access to capital markets and rising problem loans due to the tough economic environment," Maxim Bogdashkin, a Moody's analyst, said in a statement.

"The rating action reflects Moody's expectations of growing pressure on the bank's asset quality - albeit currently adequate - and unavoidable shrinkage in business volumes in the near term unless HCFB is successful in diversifying its funding base," the analyst said. "However, Moody's notes that the bank currently has an adequate liquidity position to meet its obligations and its capital ratio remains strong."

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