Moody’s changed to positive outlook on CREDIT BANK OF MOSCOW’s credit ratings
09.06.2017
On 9 June 2017, Moody’s Investors Service (Moody’s) changed the outlook to positive from stable and affirmed unsecured debt and deposit ratings of CREDIT BANK OF MOSCOW (“the Bank”) at B1. The Bank’s baseline credit assessment (BCA) was affirmed at b1 and long-term Counterparty Risk Assessment (CR Assessment) – at Ba3.
As highlighted by Moody’s: “The revision of outlook on the Bank’s ratings to positive from stable and rating affirmation reflects the improvement of the Bank’s solvency metrics over recent quarters, including resilient asset quality, enhanced profitability and strengthened capital adequacy”. Moody’s expects that these positive trends will persist in the forthcoming periods on the backdrop of general macroeconomic stabilisation.
Moody’s put emphasis on the Bank’s loan book good quality with problem loan ratio being noticeably better compared to the average for Russian banks with BCAs of b1. Moody’s also marked that it expects the Bank’s capital adequacy metrics and internal capital generation capacity to improve further.
The assigned positive outlook may translate into an upgrade of the Bank’s ratings if the current improving trends in the Bank’s solvency metrics will continue.