×
Texting is available for authorized users.
Please register or log in at the website.
×
Your request for online training has been sent. Cbonds managers will be in touch with you shortly. Thank you!

Moody's downgrades national scale rating of Mezhtopenergobank (Russia) to Ba1.ru from Baa3.ru

April 28, 2009 | "Moody’s"

Moscow, April 28, 2009 -- Moody's Investors Service has today downgraded
to Ba1.ru from Baa3.ru national scale rating (NSR) of Mezhtopenergobank
(MTEB), reflecting the bank's ongoing asset quality deterioration driven
by the worsening macroeconomic environment in Russia.

Moody's notes that MTEB's asset quality is particularly vulnerable to
exposure to distressed sectors, such as real estate and construction in
which the bank has material exposures (ca. 140% of total equity). MTEB's
asset quality has already started to demonstrate deterioration, reflected
in the substantial volume of restructured loans granted to the real
estate and construction sector, which is likely to result in a higher
level of overdue loans in the near term. This situation is aggravated by
significant concentrations of the loans in proportion to equity (e.g. top
20 loans accounted for ca. 180% of total equity) thus placing additional
pressure on economic capital. These factors are expected to translate
into a deterioration of MTEB's financial fundamentals over the course of
2009.

Moody's believes that substantial increase of loan loss provision charges
and credit losses in the medium term will weaken the bank's capital
position.

Moody's previous rating action on MTEB was on September 28th, 2007 when a
first-time national scale rating was assigned to the bank.

The principal methodologies used in rating MTEB are "Bank Financial
Strength Ratings: Global Methodology" and "Incorporation of
Joint-Default Analysis into Moody's Bank Ratings: A Refined Methodology",
which can be found at www.moodys.com in the Credit Policy & Methodologies
directory, in the Ratings Methodologies subdirectory. Other methodologies
and factors that may have been considered in the process of rating MTEB
can also be found in the Credit Policy & Methodologies directory.

Domiciled in Moscow, Russia, MTEB reported total assets of RUB10.1
billion (USD298 million) under Russian Accounting Standards (RAS) as at 1
April 2009.

Company: Mezhtopenergobank

Full company namePJSC «Mezhtopenergobank»
Country of riskRussia
Country of registrationRussia
IndustryBanks

Share:

Similar news:
minimizeexpand
Cbonds is a global fixed income data platform
  • Cbonds is a global data platform on bond market
  • Coverage: more than 170 countries and 250,000 domestic and international bonds
  • Various ways to get data: descriptive data and bond prices - website, xls add-in, mobile app
  • Analytical functionality: bond market screener, Watchlist, market maps and other tools
×