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Moody's upgrades Russia's Credit Bank of Moscow
September 27, 2017 / 11:44 AM / in 23 days

Moody's upgrades Russia's Credit Bank of Moscow

MOSCOW, Sept 27 (Reuters) - Credit rating agency Moody’s said on Wednesday it had upgraded Russia’s Credit Bank of Moscow as it expected the bank, one of the country’s largest, to benefit from the central bank’s support if needed.

Moody’s upgraded the bank’s ratings to Ba3 from B1 and changed the outlook to stable from positive.

Russia’s banking sector is under scrutiny after two major private lenders, Otkritie Bank and B&N Bank, had to be rescued by the central bank in a space of a month. Market insiders say other private banks could fail, though officials and banking analysts say a sector-wide crisis is unlikely.

Credit Bank of Moscow is Russia’s ninth biggest bank by assets, according to central bank data.

“The upgrade follows the central bank announcement on 13 September 2017 that it had designated Credit Bank of Moscow as a systemically important bank,” Moody’s said.

The central bank has recently introduced and tested its new tool to provide extraordinary support to large privately-owned banks via its Banking Sector Consolidation Fund.

According to Moody‘s, Credit Bank of Moscow’s problem loans ratio at end-June 2017 stood at 8.8 percent of its gross loans. The ratio averages about 12 percent for all Russian banks.

Vladimir Chubar, the chairman of Credit Bank of Moscow, has said this week that uncertainty over the country’s banking system had been affecting depositors, but the situation was under control. (Reporting by Kira Zavyalova; Writing by Denis Pinchuk; Editing by Maria Kiselyova/Jeremy Gaunt)

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