Expert RA downgrades Mast-Bank

Rating agency RAEX (Expert RA) has downgraded its creditworthiness rating on Mast-Bank to B (satisfactory creditworthiness). The rating outlook is negative, which means the strong likelihood of the rating downgrade over the medium term. The bank's creditworthiness rating was previously B+ (the sufficient level of creditworthiness), the outlook is negative.

The rating downgrade was driven by a continuing outflow of retail funds, which is draining the liquidity cushion, while there are no comparable sources to replace retail funds. The bank's management said that rehabilitation talks got under way, but the agency has no information about the circle of potential rehabilitators. The low likelihood of fulfillment of the obligations to the deposit holders without external support amid a continuing heavy outflow of funds is reflected in the negative rating outlook.