Russian rating agency RAEX (Expert RA) has downgraded its creditworthiness rating on Mezhtrustbank to B (low level of creditworthiness). The rating carries a negative outlook, which means the strong likelihood of the rating being downgraded over the medium term. Previously the bank's creditworthiness rating was B++ (satisfactory level of creditworthiness), with a negative outlook.
The rating downgrade was primarily driven by deteriorated short-term liquidity indicators, and also reports about disruption in the bank's operations.
Moreover, the agency pointed to the bank's dependence on household funds as a source of funding and to its insufficiently conservative policy of loan loss provisions.
The rating is backed by acceptable long-term liquidity ratios and modest retail NPLs.
