Moody's rates Bank Avangard B2

Moody's Investors Service said it assigned B2 long-term and not-prime short-term local- and foreign-currency deposit ratings and E+ bank financial strength rating to JSC Bank Avangard, along with an A3.ru long-term national scale credit rating.

The outlook is stable.

The ratings are underpinned by Avangard's established franchise in corporate, retail and leasing segments which is supported by the bank's close connections with a number of key clients and sound financial fundamentals, Moody's said.

The ratings are constrained by single-name concentrations on both sides of the balance sheet, refinancing risks to be faced by the bank starting from 2009, high level of related parties lending compared to the bank's equity and some corporate governance and risk management deficiencies, the agency said.

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