International rating agency Moody's Investors Service has placed Rosenergobank on credit watch negative (long-term local currency and foreign currency deposit ratings of B3, BCA and adjusted BCA of b3, and long-term CRA of B2(cr)). The bank's short-term deposit ratings were affirmed at Not Prime, and short-term CRA at Not Prime(cr), Moody's specified in a press release.
The downgrade of Rosenergobank's ratings was mainly driven by a reduction in its liquidity positions, a trend seen in 2016, and also by deteriorating asset quality that is reflected by a substantial share of restructured loans, said the press release.
Among positive factors analysts point to modest growth of the bank's capital cushion to cover losses after adding Rub 1.5 bln in subordinated loans to core capital in September 2016.
The rating agency plans to revise Rosenergobank's ratings over the next three months.