Russian rating agency RusRating has affirmed its international scale CCC credit ratings assigned to Express-Volga, VUZ-Bank, Gazenergobank and Bank Poidem!, which are part of financial group Life, and B- national scale ratings, leaving them on rating watch.
As the agency noted in a press release, the affirmation of the ratings was determined by the approval of the Bank of Russia's plans to allow the Deposit Insurance Agency (DIA) to take part in measures to prevent these four lending institutions from going bankrupt. Temporary administration teams began to work at the banks, and will assess their financial standing. To maintain their liquidity Rossiyskiy Capital was retained to execute operations to keep the banks running using the DIA's funds. Longer term, a tender will be held to select an investor that will rehabilitate them.
To remind, the plans to forestall the bankruptcy of Life Group banks were approved after the Bank of Russia on Wednesday, August 12, revoked a license held by the group's parent bank, Probusinessbank, and approved a plan for the DIA to take part in settling its obligations. For this reason, the agency immediately downgraded and withdrew ratings assigned to Probusinessbank itself.
