International rating agency Moody's has cut its long-term foreign currency and local currency deposit ratings on Vneshprombank from B2 to B3, with a negative outlook, Moody's said in a press release.
The rating action reflects higher vulnerability of Vneshprombank's credit portfolio while domestic operating conditions continue to deteriorate, the agency pointed out.
Analysts noted that the negative rating outlook reflects permanent risks to the financial institution's credit profile due to hard operating conditions in Russia. These risks continue to put pressure on Vneshprombank's financial showings.
Vneshprombank's credit portfolio expanded by 76% from January 1, 2014 to November 1, 2015 and it would likely need extra provisions owing to the higher impact of uncollateralized lending, Moody's added.
