RA Moody's downgrades two Armenian banks' ratings
March 22, 2016
Moody's Investors Service has today taken rating actions on the two Armenian banks -- Ardshinbank CJSC and VTB Bank (Armenia). These actions follow the weakening of Armenia's credit profile, as reflected by Moody's downgrade of Armenia's government debt rating to B1 from Ba3 on March 18, 2015. For additional information, please refer to the related announcement.
Specifically, Moody's downgraded Ardshinbank's long-term local currency deposit rating and foreign-currency senior unsecured debt rating to B1 from Ba3. This was driven by downgrade of the bank's Baseline Credit Assessment (BCA) to b1 from ba3, reflecting Moody's view that the bank's creditworthiness is highly correlated to that of its national government due to the shared exposure of their financial health to the country's macroeconomic. All the bank's ratings carry a stable outlook reflecting Ardshinbank's resilience to challenging credit conditions and a stable outlook assigned to Armenian government ratings.
At the same time, the rating agency has also downgraded Ardshinbank's and VTB Bank (Armenia)'s long-term foreign-currency deposit ratings to B2 from B1, following the downgrade of the ceiling for foreign-currency deposit ratings in Armenia.
Company — VTB (Armenia)
Full nameAO "VTB Bank" (Armenia)