July 08, 2011 |
|London, 08 July 2011 -- Moody's Investors Service has today downgraded the |
long-term local currency deposit rating of Bank Moscow-Minsk ("BMM") to
B2 (with a negative outlook) from B1. All other ratings of BMM are not
affected by this rating action. This concludes the review initiated on 30
Moody's assessment is primarily based on the rating downgrade of BMM's
parent, Bank of Moscow (BOM), on 8 July 2011. BOM's standalone Bank
Financial Strength Rating (BFSR) was downgraded to E+ (mapping to B2 on
the long-term scale) from D- (see www.moodys.com). BOM's standalone E+
BFSR is currently used as an anchor for parental support.
As a result, BMM's B2 long-term local currency deposit rating now only
reflects its standalone financial strength which is reflected in its E+
BFSR, mapping to B2 on the long-term scale.
The negative outlook on BMM's long-term local currency deposit rating is
driven by the considerable downside risks reflected in the potential
deterioration of the operating environment, which would, in turn, affect
the Belarusian banking system. Moody's believes that the system's
financial fundamentals are likely to come under pressure in the near to
medium term, following the recent worsening of the country's
The principal methodologies used in this rating were Bank Financial
Strength Ratings: Global Methodology published in February 2007, and
Incorporation of Joint-Default Analysis into Moody's Bank Ratings: A
Refined Methodology published in March 2007. Please see the Credit Policy
page on www.moodys.com for a copy of this methodologies.
Headquartered in Minsk, Belarus, BMM reported total assets of US$633
million and equity of US$73 million, according to the bank's audited IFRS
financial report at year-end 2010. BOM controls 100% of the bank's shares.
Company: Bank Dabrabyt
|Full company name||Bank Dabrabyt JSC|
|Country of risk||Belarus|