Russian rating agency RusRating has downgraded its international scale credit ratings on banks which make up Life Group, namely that on VUZ Bank (Ekaterinburg), Gazenergobank (Kaluga), Commercial Bank Poidem! (Moscow) and Express Volga (Saratov), from BB to CCC, and from BBB+ to B- on the national scale, and the rating outlook is stable.
The agency explained these rating actions by growing regulatory and reputation risks of the group's head bank, Probusinessbank, and also (in cases of VUZ Bank, Gazenergobank, and Commercial Bank Poidem!) by substantial growth of credit risks as active operations carried out with the parent bank are high.
To remind, last Friday, August 7, the rating agency cut Probusinessbank's credit ratings after temporary administration was appointed and the lending institution was cut off the urgent e-payment system.
RusRating also reported that ratings assigned to Probusinessbank, Express Volga, Commercial Bank Poidem, Gazenergobank and VUZ Bank were put on rating watch, this means that their ratings or rating outlook could be revised both up or down depending on extra information that can be obtained both from the company and public sources.
