PRIME. International rating agency Moodys affirmed its long-term foreign currency and local currency deposit ratings on Sovcombank at B2, while maintaining the negative outlook, the agency said in a press release.
Moodys also affirmed the banks short-term deposit rating of Not Prime and BFSR at E+, with a stable outlook.
The rating actions came after a report that Sovcombank acquired GE Money Bank, which was owned by US corporation General Electric. Following the reports about the deal Moodys downgraded on Tuesday its long-term deposit ratings on GE Money Bank from Ba2 to Ba3 and placed them on RWN.
Moodys analysts think that both Sovcombank and GE Money Bank do business in the Russian segment of unsecured consumer lending. “The scheduled transaction and subsequent merger of two financial institutions will substantially expand and diversify the merged banks clientele, the lineup of services and the coverage area," the agency said in the press release.