Moody's withdraws Russian Standard Bank's SQ ratings
December 7, 2009 "Moody’s"
Primary servicer of Russian credit cards, car loans, point of sales and
London, 07 December 2009 -- Moody's Investors Service has withdrawn the
SQ3+ and SQ2.ru primary servicer quality (SQ) ratings of Russian Standard
Bank ('RSB') at the company's request. Both EMEA SQ and National Scale SQ
ratings only applied to RSB's servicing quality of credit cards
receivables, car loans, point of sales and personal loans in Russia. The
rating withdrawal was done for business reasons. Please refer to Moody's
Withdrawal Policy on moodys.com. At the time of this withdrawal, all
securitisation transactions where RSB participated as a servicer were
previously fully redeemed.
MOODY'S SQ NATIONAL SCALE RATINGS (SQ NSR)
SQ NSRs are based on the same areas of review as the one used for EMEA SQ
Ratings (for more information, see the next section). SQ NSRs are denoted
with the suffix (".nn") to indicate that the ratings are on national
scale ratings and should solely be used for domestic assessments (e.g.
"ru" means the rating is a SQ NSR for a Russian servicer entity).
Initially, Moody's is introducing SQ NSRs for the Russian market as it is
one of the markets that has grown significantly over recent years.
The financial stability area is the sole area that differs between an
EMEA SQ and a SQ NSR: EMEA financial stability analysis is based on the
global credit scale public rating while SQ NSR financial stability
analysis takes into account the national credit scale public rating of
the servicer. In cases where the servicer is not rated by Moody's,
Moody's will perform an internal assessment of the entity's financial
credit quality to derive an EMEA and national financial stability score.
MOODY'S SQ RATINGS (EMEA SQ)
Moody's Servicer Quality (SQ) ratings are opinions regarding the ability
of a loan servicer to effectively prevent or mitigate losses in a
securitisation. The SQ approach evaluates how effective a servicer is at
either preventing defaults in the first place or maximizing the
recoveries to a transaction when defaults do occur. The SQ rating also
considers the operational and financial stability of a servicer. This
assessment is based on the company's organisational structure and
management characteristics, its financial profile, operational controls
and procedures as well as its strategic goals.
SQ ratings are provided for servicers who act as the Primary Servicer
(servicing the loans from the beginning to the end), Special Servicer
(servicing only the more delinquent loans), or Master Servicer
(overseeing the performance and reporting from all of the servicers). For
Primary Servicers, the rating will apply only to the loan types
identified in the Servicer Quality Opinion. SQ ratings are reviewed at
least annually in order to address potential changes in a servicer's
strategy, portfolio, operational guidelines or overall performance.
The rating scale ranges from SQ1 (strong) to SQ5 (weak). Where
appropriate, a "+" or "-" modifier will be appended to the SQ2, SQ3, and
SQ4 rating category and a "-" modifier will be appended to the SQ1 rating
category. A "+" modifier indicates the servicer ranks in the higher end
of the designated rating category. A "-" modifier indicates the servicer
ranks in the lower end of the designated rating category.
Company — Forward Bank
Full nameForward Bank PJSC