Rating agency RIA Rating has downgraded Mast-Bank's national scale creditworthiness rating from BB to CCC. The rating outlook is uncertain, further rating actions depend on negotiations over the bank's rehabilitation.
Analysts pointed out that restrictions imposed on deposit accounts and the negative news flow are creating substantial risks of funding. Meanwhile, as of April 1, 2015 nearly 75% of Mast-Bank's obligations fell to households' funds. Experts believe that growing reputation risks in the short term would create additional conditions for clients to take their money out of the lending institution and would deepen the liquidity problem.
"In these conditions the rating is lowered due to the rising number of reports that the bank refuses to fulfill its obligations (imposed restrictions on deposit accounts, refuses to give funds and makes no payments)," the rating agency emphasized in a press release.
