Moody’s cuts Vozrozhdenie Bank

Moody's Investors Service said it downgraded Vozrozhdenie Bank's long-term local and foreign-currency deposit ratings to B2 from B1, baseline credit assessment and adjusted BCA to b2 from b1, and counterparty risk assessment to B1(cr) from Ba3(cr).

The agency maintained the review for downgrade placed on the above ratings on Nov. 1.

At the same time, the short-term Not Prime deposit ratings and short-term Not Prime(cr) counterparty risk assessment were affirmed.

The downgrade and review maintenance follow the recent failure of its sister-bank Promsvyazbank (long-term bank deposits: B2 developing, BCA: ca), which was taken over by the Central bank of Russia on Dec. 15.

Moody’s said the action reflects Vozrozhdenie Bank's links to Promsvyazbank and its shareholders, which pose risks of related-party exposure and damage to the bank's reputation given the negative publicity surrounding Promsvyaz group.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.