Moody's downgrades KIT

Moody's Investors Service said it downgraded KIT Finance Investment Bank (Russia) B2 long-term foreign-currency and local-currency deposit ratings to Caa2.

The agency noted the Caa2 long-term foreign- and local-currency ratings remain on review with direction uncertain.

Moody's said the downgrades of the long-term deposit ratings capture the fact that the bank has defaulted on its obligations under margin calls on repurchase transactions and has incurred significant asset quality problems that have wiped out most of the bank's capital.

The actions reflect the current extremely adverse market conditions on the bank's huge risk positions resulting from its high risk appetite, the agency said.

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