Moody’s cuts Khanty-Mansiysk Bank Otkritie

Moody's Investors Service said it downgraded the long-term local and foreign-currency deposit ratings of Khanty-Mansiysk Bank Otkritie PJSC to B2 from B1, the baseline credit assessment (BCA) to b3 from b2 and the adjusted BCA to b2 from b1, given an increased pressure on the bank's standalone financial metrics.

The agency also downgraded the bank's hybrid subordinated debt rating to Caa1 (hyb) from B3 (hyb).

The ratings incorporate a one-notch uplift from the b3 BCA based on Moody’s assessment of a high likelihood of support from its parent, Bank Otkritie Financial Corp. PJSC (Ba3 negative).

The agency also affirmed the bank's short-term deposit ratings at Not-Prime.

The outlook on the long-term ratings remains negative.

At the same time, Moody's Interfax Rating Agency downgraded national scale long-term deposit rating to Baa1.ru from A2.ru. The national scale rating carries no specific outlook.

Moody’s said the downgrade reflects intensified downward pressure on the bank's standalone financial profile and reduced loss absorption buffers.

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