Moody's cuts CenterCredit

Moody's Investors Service said it downgraded the long-term foreign-currency deposit rating of Bank CenterCredit to B1 from Ba3, along with its global long-term local- and foreign-currency senior unsecured debt ratings to B2 from Ba3 and B1, respectively.

Its junior subordinated foreign-currency debt rating also was downgraded to Caa1(hybrid) from B3(hybrid).

Moody's also said it assigned B1/not-prime local-currency deposit ratings to the bank and affirmed its not-prime short-term foreign-currency deposit ratings.

The rating is negative.

The deterioration of the bank's financial profile stems primarily from the considerable weakening of the bank's capital position over the recent period due to ongoing impairment in the loan book, Moody's said.

Also, a material deterioration of the bank's net interest margin in 2010 led to negative operating efficiency in the most recent financial quarter, which prevented it from absorbing mounting credit losses and created additional negative pressure on the bank's capital adequacy, the agency added.

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