International rating agency Moody's Investors Service has affirmed Russian International Bank's long-term local currency and foreign currency deposit ratings and local currency debt ratings at B3, and short-term local currency and foreign currency deposit ratings at Not Prime. The bank's BCA and adjusted BCA were confirmed at b3, and long-term and short-term counterparty risk assessments at B2(cr) / Not Prime (cr). The outlook for all the bank's ratings on an international scale was changed from stable to negative, the agency specified in a press release.
The bank's national scale rating was also confirmed, data on the website of Moody's showed.
The agency explains the downward revision of the bank's rating outlooks to higher vulnerability of the bank's creditworthiness and liquidity. Analysts pointed to the substantial portion of loans granted to affiliated parties, very high concentration of the credit portfolio on the biggest borrowers, high dollarization of the bank's operations, and a deterioration in the bank's liquidity indicators in recent months.
The bank's deposit ratings, in turn, were confirmed on the back of its adequacy capital adequacy ratios and loan loss provisions which are comfortable at the moment.
