International rating agency Moody's has lowered SB Bank's long-term foreign currency and local currency deposit ratings from Caa1 to Ca, the agency said in a press release.
The bank's ratings were put on review with a possible downgrade, the rating outlook is developing. The lending institution's BFSR was affirmed at E.
On January 20, 2015 Moody's Investors Service has cut its long-term ratings on SB Bank from B3 to Caa1 due to liquidity problems faced by the bank. On January 22, 2015 international rating agency S&P downgraded SB Bank's rating from B- to CCC, with a negative outlook.
SB Bank began to delay corporate payments back in late December 2014, and limited the closing of retail deposit accounts this January. Later the lending institution put a lid on cash withdrawals at its offices at Rub 50,000, $1,000 or €700 per business day. The bank demanded to file an application in advance to get money at the bank.
Last Friday SB Bank said that it would cease to pay out cash on January 26. These operations were still unavailable on January 27.
Moreover, on January 26, 2015 the Bank of Russia connected off SB Bank from the urgent electronic banking messaging system, business daily Vedomosti reported citing sources at two lending institutions, counterparties of SB Bank. As a matter of fact, this move of the regulator means that technically SB Bank is unable either to receive or make payments in rubles.
