International rating agency Moody's Investors Service has lowered Rosenergobank's long-term local currency and foreign currency deposit ratings from B3 to Caa2, setting negative rating outlook. At the same time, the bank's BCA and adjusted BCA were cut from b3 to caa2, long-term CRA reduced from B2(cr) to Caa1(cr). The bank's short-term deposit ratings were affirmed at Not Prime, and short-term CRA at Not Prime(cr), the agency said in a press release.
The downgrade of Rosenergobank's ratings was mainly driven by its deteriorating liquidity position, analysts noted. The agency also takes into account the bank's weaker asset quality.
The negative outlook for the ratings reflects the bank's unstable liquidity profile and its substantial vulnerability to the withdrawal of retail deposits and/or major corporate deposits, Moody's specified.