Expert RA cuts Bank Megapolis rating outlook to negative

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Rating agency Expert RA has revised its outlook for the creditworthiness rating assigned to Bank Megapolis (based in Cheboksary) from developing to negative and removed the rating from watch. The rating itself was affirmed at A (high creditworthiness, Sublevel 3), the agency specified in a press release.

"The agency believes that under the current macroeconomic conditions there is a high likelihood of the credit portfolio deteriorating in quality during the period of rating," noted Mikhail Doronkin, deputy head of banking ratings at Expert RA, adding given high concentration of credit risks and the insufficiently conservative provision policy the reclassification of loans of at least one or two large borrowers would produce a substantial impact on capital adequacy. These factors prompted the agency to revise the bank's rating outlook, he said.