International rating agency Moody's Investors Service has lowered its local currency and foreign currency long-term deposit ratings on Finprombank from B3 to Caa2, the ratings carry a negative outlook. The relevant press release was posted on the website of the rating agency.
The lending institution's BCA and adjusted BCA were lowered from b3 to caa2, long-term CRA cut from B2(cr) to Caa1(cr), short-term local currency and foreign currency deposit ratings were affirmed at Not Prime, and short-term CRA was affirmed at Not Prime(cr).
The downgrade of Finprombank's deposit ratings reflects the bank's weak liquidity position, a strong trend towards asset quality deterioration and high loan losses that put pressure on capital, Moody's said in the press release. Although shareholders backed the bank's capital, this amount hardly exceeds the bank's need for provisions, analysts pointed out.
