| Moody's downgrades TumenEnergoBank's deposit ratings to C |
|
15/12/2008 23:22 (1153 Day 10:59 minutes ago) | |||||
|
The FINANCIAL -- Moody's Investors Service on December 15 downgraded the long-term local and foreign currency deposit ratings of Russia's TumenEnergoBank (TEB) to C from Caa2.
The bank's E bank financial strength rating (BFSR) and Not Prime short-term local and foreign currency deposit ratings were affirmed. At the same time, Moody's Interfax Rating Agency downgraded TEB's long-term national scale credit rating (NSR) to C.ru from B3.ru. MOSCOW -based Moody's Interfax is majority-owned by Moody's. All ratings are now at their lowest possible level and the outlook on the global scale ratings is stable.
The assigned ratings of C reflect Moody's expectation that TEB's senior unsecured creditors will incur a loss of more than 50%, with the exception of private individuals with deposits at the bank in the amount up to RUB700,000 (US$25,000), which are eligible for 100% repayment by the State corporation Deposit Insurance Agency. According to Moody's, the rating action was triggered by the withdrawal of TEB's banking licence by the Central Bank of Russia on 4 December 2008 "due to an inability to meet its obligations to creditors and the failure of the bank's management to recover the bank's financial standing". This concludes the review for possible downgrade initiated on the affected ratings on 30 September 2008.
|
|
|
