Chairman of the board of the Russian Standard Group Rustam Tarikov
Photo: Nikita Infantyev
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Russian Standard Bank Downgraded
Rating agencies are reviewing banks that provide consumer credit. Following Fitch's example, Moody's has downgraded the Russian Standard Bank's prognosis from “stable” to “negative.” Moody's analysts Armen Dalakyan explained that the main reason for that move is the bank's lower liquidity due to its high dependency on foreign markets and its recent debt payoffs. However, he noted that the bank remains one of the most profitable in the entire CIS, so the bank's actual rating has not been altered. That could happen in 12-18 months, however.
The Fitch agency lowered Russian Standard Banks' long-term default rating from BB to BB- two days ago, noting that the bank had written off a large amount of bad debt in the first half of the year, reduced the commissions it charges and experienced difficulties attracting financing. Fitch left the bank's “stable” prognosis intact, however. “The stable prognosis indicated the expectation that the bank will remain profitable,” Fitch analytical director Alexander Danilov said.
Standard & Poor's agency spokesman Evgeny Tarzimanov said that that agency does not have immediate plans to reconsider its rating of the bank, which is now BB- with a stable prognosis. Other banks are leery of a wave of ratings changes, however. “There are several banks in Russia with similar business models and a high volume of foreign loans,” observed Moody's Dalakyan. “In our October research, we identified ten such banks and we intend to watch them closely.” Home Credit and Finance Bank has the second highest level of foreign financing, according to Moody's.
www.kommersant.com
All the Article in Russian as of Oct. 12, 2007
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