Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS

Moody's Changes Ratings for 7 Russian Banks
23.10.2014 08:41

Moody's has taken rating actions on seven Russian financial institutions following the downgrade of Russia's government rating.

      The banks affected are Sberbank, Bank VTB JSC, Gazprombank, Russian Agricultural Bank, Agency for Housing Mortgage Lending OJSC, Vnesheconombank and Alfa-Bank. Alfa-Bank is the only one from the list that is privately owned, the rest are state-controlled lenders.

      “These actions follow the weakening of Russia's credit profile, as reflected by Moody's downgrade of Russia's government debt rating to Baa2 from Baa1 on 17th of October, 2014,” reads the official statement.

      “Specifically, Moody's downgraded the supported senior unsecured, subordinated debt and deposit and issuer ratings of the government-owned Russian financial institutions. The outlook on the long-term ratings of these institutions is negative. The outlook on privately-owned Alfa-Bank's Ba1 supported senior debt and deposit ratings and its guaranteed special purpose vehicles were changed to negative from stable,” adds the press release.

      Earlier, Russia-IC reported that Moody's Investors Service downgraded the government of Russia's debt rating by one notch to Baa2 from Baa1 in a move that could speed up capital flight in a country already suffering from liquidity and investment crunch.

      Here were the key drivers, according to the rating agency, behind the downgrade:

      • Russia's increasingly subdued medium-term growth prospects, exacerbated by the prolongation of the Ukraine crisis, including through the impact of expanded international sanctions.

      • The gradual, but ongoing erosion of the country's foreign-exchange buffers due to capital flight, Russian borrowers' restricted international market access and low oil prices.

      “Even prior to the crisis in Ukraine, the potential growth rate of the Russian economy was falling, constrained, according to the IMF, by economic rigidities such as infrastructure bottlenecks and shortfalls in labor skills and education,” read the press release.


Author: Mikhail Vesely

Tags: Russian banks     

Next Previous

You might also find interesting:

Comment on our site

RSS   twitter      submit

Installations  Russian scientists  Yuri Gagarin  Russian festivals  Artillery  Exhibitions in Moscow  Books  Palaeoecology  Skiing Tunnel   Kemerovo Regional Museum Of Local History  Russian politics  Russian tourism  Russian Cinema  Russian drinks  Zabegina  Dynasty Foundation  Fencing  Ferapont Monastery  Charity  Visa   St. Petersburg  State Duma  Smoking in Russia  New Year  Siberia  Russian business  Shigeru Yoshida  ENEA  SahArt  Russian economy  Monuments to People  Russian Composers  Syria  Sheremetyevo Airport  Russian opera singers  Biysk  Concerts  Elina Bystritskaya  Anatoly Efros  Eurasian Economic Union  Russian Museum of Ethnography  Moscow  Mercedes-Benz Fashion Week Russia  Indie Music  Chelyabinsk regional museum   VTB  Russian government  Organ Concerts  Russian science  Speranza Couture 

Travel Blogs
Top Traveling Sites