Fitch takes action on 7 Moscow banks

Fitch Ratings said it affirmed the long-term foreign-currency issuer default ratings of seven Moscow-based banks at B- and revised three banks' outlooks to negative from stable.

The actions have been driven by the deteriorating operating environment, Fitch said, and in particular by the ongoing and potential future worsening of asset quality.

The long-term foreign-currency issuer default rating of B&N Bank (formerly B.I.N. Bank) is affirmed at B-, along with its senior unsecured debt at B-, recovery rating at RR4, short-term foreign-currency issuer default rating at B and national long-term rating at BB(rus). Its outlook is stable and reflects the bank's reasonable capitalization and loss absorption capacity, acceptable liquidity position and management's track record of managing the bank through previous crises, Fitch said.

The long-term foreign-currency issuer default rating of Central Commercial Bank Ltd. is affirmed at B-, along with its short-term foreign-currency issuer default rating at B and national long-term rating at BB-. Its outlook is stable and reflects its high capital ratios and considerable loss absorption capacity, Fitch said.

The long-term foreign-currency issuer default rating of CentroCredit Bank is affirmed at B-, along with its short-term foreign-currency issuer default rating at B. Its national long-term rating is downgraded to BB-(rus) from BB(rus) and its outlook is revised to negative from stable.

The downgrade reflects the bank's reduced capitalization, high exposure to volatile securities markets and the potential for further asset quality deterioration in the current environment, Fitch said.

The long-term foreign-currency issuer default rating of JSC SDM-Bank is affirmed at B-, along with its short-term foreign-currency issuer default rating at B and national long-term rating at BB-. Its outlook is revised to negative from stable and reflects the bank's moderate loss absorption capacity, potential for asset quality deterioration in the current environment and high loan concentration on individual borrowers and the real estate/construction sectors, Fitch said.

The long-term foreign-currency issuer default rating of National Bank Trust is affirmed at B-, along with its senior unsecured debt at B- with recovery rating at RR4 and short-term foreign-currency issuer default rating at B. Its outlook is revised to negative from stable and reflects the bank's tight liquidity position, ongoing deterioration of asset quality in the difficult operating environment and the risk associated with its indebtedness to oil company Rosneft, Fitch said.

The long-term foreign- and local-currency issuer default ratings of Probusinessbank is affirmed at B-, along with its senior unsecured debt at B- with recovery rating at RR4 and short-term foreign-currency issuer default rating at B. Its national long-term rating is downgraded to BB-(rus) from BB(rus) and its outlook is negative. The downgrade reflects increasing loan impairment driven by the deteriorating operating environment, tight capitalization and credit and operational risks associated with the integration of recently acquired banks, Fitch said.

The long-term foreign-currency issuer default rating of Russian Universal Bank is affirmed at B-, along with its short-term foreign-currency issuer default rating at B. Its national long-term rating is upgraded to BB(rus) from BB-(rus) and its outlook is revised to stable from negative. The upgrade reflects the strengthening of its liquidity position since October 2008 as a result of the contraction of the loan book and somewhat lower customer funding concentrations, Fitch said.

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