PRIME. International rating agency Moody’s has cut the outlook for its long-term deposit rating of Caa1 on Rossiyskiy Credit to negative from stable, affirming the lender’s short-term rating of Not Prime, the agency said in a press release.
The lender’s BFSR was affirmed at E, which equals the base creditworthiness estimate of Caa1, with the outlook left stable.
The rating action reflects our assessment of the risks associated with the sharp increase of the credit portfolio, deteriorating indicators of the capital adequacy ratio and growing dependence on inter-bank loans, Moody’s said in a press release. After changing hands last spring when the group of private investors acquired the bank from billionaire Boris Ivanishvili for $352 mln, the credit portfolio expanded to Rub 44.4 bln (as of late September).
This number is 3x higher than last year’s. Sharp growth of lending could create high risks associated with the deteriorating quality of assets, the agency’s analysts added.
