Moscow Capital Bank assigned 'E+' bank financial strength rating - Moody's |
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Published
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Fri, 26 Oct 2007 15:52
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MUMBAI (Thomson Financial) - Moody's Investors Service said it has assigned global scale ratings to Moscow Capital Bank (MCB) with a bank financial strength rating (BFSR) of 'E+' and long-term and short-term local and foreign currency deposit ratings of 'B3/Not Prime'.Meanwhile, Moscow-based Moody's Interfax Rating Agency, which is majority-owned by Moody's, assigned a long-term national scale rating of 'Baa3.ru' to the bank.According to Moody's and Moody's Interfax the 'B3/Not Prime/E+' global scale ratings reflect MCB's global default and loss expectation, while the 'Baa3.ru' national scale rating reflects the standing of the bank's credit quality relative to its domestic peers.The outlook on the global scale ratings is stable, while the national scale rating carries no specific outlook, the ratings agency said.Moody's Interfax said it notes that MCB is unlikely to receive support from its owners or from the Russian government in case of distress and hence, the 'B3' long-term foreign currency deposit rating assigned to the bank does not incorporate any probability of external support.The ratings agency said the 'E+' BFSR is constrained by MCB's limited franchise, the high borrower and industry concentration in its loan portfolio, the bank's large exposure to related-party lending, the low level of economic capital and underdeveloped corporate governance practices.The rating reflects the bank's consistently broadening branch network and territorial coverage, and its satisfactory profitability indicators, including healthy net interest margin.TFN.newsdesk@thomson.comami/pmiCOPYRIGHTCopyright Thomson Financial News Limited 2007. All rights reserved.The copying, republication or redistribution of Thomson Financial News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Financial News.
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