Author`s name Pravda.Ru

Moody's confirms ratings of 17 Russian commercial banks

The international rating agency Moody's has confirmed the ratings of 17 Russian commercial banks, its press release says.

Simultaneously, it has downgraded the financial-stability rating of Alfa-Bank from "D" to "D-" and confirmed its currency-obligations rating "Ba2".

Forecasts of all ratings are stable.

Thus, the agency has completed the revision of ratings (with a downgrading possibility) of 18 Russian banks, triggered by the recent market instability leading to trust crisis.

The long-term currency-deposit ratings of Alfa-Bank, Moscow Credit Bank, International Industrial Bank, Rosbank, IBG Nikoil, Nomos-Bank, Petrokommerz, Promsvyazbank, Roseurobank, Trust and Zenith have been confirmed at the "B1" level, MDM-bank and Moscow Bank "Ba2", KMB-bank, Russian Development Bank, Russki Standard, Transcreditbank - "Ba3".

The financial stability rating of MDM-bank has been confirmed at the "D" level, Russki Standard and Bank of Moscow at "D-".

Most banks have promptly recovered and continue as usual, Moody's notes. The crisis will not produce a long-term negative impact on the financial condition of banks, its analysts believe.

The deterring factor for the banks' ratings is their susceptibility to confidence crises and feeble corporative management, Moody's notes.

Efficient reforms of the banking sector and streamlined rationalisation of a number of banks in Russia will be crucial for the stability of this economic sector and upping of bank ratings in the future, the communique says. In addition, the confidence-building measures and deposit guarantees of the Bank of Russia have actually pacified depositors' fears, the agency believes.

As regards the Alfa-Bank, the "Ba2" currency rating confirmation bases on the readiness and capability of its owners to prop it up in case of need, as was the case during the recent crisis.

The financial-stability credit downgrading is due to the bank's weak deposit base. Alfa-Bank has lived through a sizeable outflow of private and corporative deposits. Its financial stability has been pressured and appreciable efforts should be made for stabilisation, Moody's notes.