Following the revision of the ratings of Bank of Moscow after the official announcement of the beginning of its recovery rating agencies have started the action with respect to ratings of the majority shareholder of Russia's largest troubled bank - VTB. While they were affected only by forecasts of ratings. Agency Moody `s changed them from" stable "to" negative. "
Rating agency Moody `s Investors Service downgraded the ratings outlook for a number of bank VTB and VTB other group companies from" stable "to" negative. " Outlook changed with respect to financial strength ratings of VTB Bank (now at D-), long-term ratings for deposits in national and foreign currencies (Baa1), and ratings on priority / subordinate bonds (Baa1 / (P) Baa2). With regard to retail "daughter" VTB - VTB 24 - the forecast for the financial strength rating was "stable", but on its debt rating was "negative" outlook. Similar predictions are installed on the ratings of priority debt VTB Capital SA (Now at Baa1) and subordinated debt ratings of Northwest Regional Center of VTB Bank (Baa2). Such actions of rating agency with respect to predictions on ratings of banks and companies, VTB Group - a consequence of the impending consolidation of the Bank of Moscow, who is having financial problems.
The procedure for financial recovery of the Bank of Moscow, in which VTB 46.48%, was launched on June 30. On this day, the Board of Directors of the Bank of Russia approved the plan for the involvement of Deposit Insurance Agency (DIA) in the prevention of bankruptcy "Bank of Moscow". For these purposes will be allocated 295 billion rubles. support funds - from their DIA (which will give appropriate credit to the Central Bank) will receive the Bank of Moscow. Another 100 billion rubles. in the capital of the Bank of Moscow to build himself VTB. The condition for the transfer of funds from the state is the consolidation of VTB Group to 75% of the shares of the Bank of Moscow, scheduled for completion by the end of July. Now I live in VTB is owned 46.48% stake in Bank of Moscow. After consolidation own 75 per cent stake will be two 100-percent "daughter" VTB - "VTB Pension Administrator" and "VTB Debt Centre".
Moody `s action against Outlooks VTB followed the deterioration of the ratings of Bank of Moscow, with some delay. In late June, Moody `s before making a decision on reorganization of the Bank of Moscow has worsened the financial strength rating of Bank of Moscow from D to D-, deposit ratings - from Ba2 to Ba1. The reason was the high information uncertainty with respect to the Bank of Moscow, in particular, because of failure to timely audited financial statements under IFRS. His ratings have been placed under surveillance with an early decline. Ratings VTB Moody `s then affirmed, explaining that he did not expect to further increase investments in this asset VTB. Nevertheless, the bank's rehabilitation plan did not meet those expectations - from the need to invest in VTB Bank of Moscow has almost as much as the state bank has spent on this controversial trade (103 billion rubles).. Apparently, this was one reason for the revision of ratings of VTB.
However, while a significant negative impact on the VTB reduced forecast on ratings is not rendered. On the contrary, today, the bank reported that drew a record for Russian borrowers in the syndicated loan volume of $ 3.13 billion at LIBOR plus 130 basis points. It is interesting that approximately the same amount in terms of Dollars and VTB need to make in the future in the capital of the Bank of Moscow.
At the same today as ratings of the Bank of Moscow, Moody `s has lowered again. Financial strength rating of Bank downgraded to D-to E +, Long-term subordinated debt in foreign currency - from Ba2 to Ba3. Ratings outlook - "negative". Another reduction rating refers to the fact the official recognition of the problems the bank's asset quality and understanding of large-scale problems. As explained by the agency, "negative" outlook on the bank reflects the risks that the process of readjustment can be interrupted or postponed due to the fact that the state bank VTB will not be able to consolidate needed to get state help finance 75% of the Bank of Moscow. In this case, the financial strength ratings of the former city government bank support may be lowered again.
Rating agency Moody `s Investors Service downgraded the ratings outlook for a number of bank VTB and VTB other group companies from" stable "to" negative. " Outlook changed with respect to financial strength ratings of VTB Bank (now at D-), long-term ratings for deposits in national and foreign currencies (Baa1), and ratings on priority / subordinate bonds (Baa1 / (P) Baa2). With regard to retail "daughter" VTB - VTB 24 - the forecast for the financial strength rating was "stable", but on its debt rating was "negative" outlook. Similar predictions are installed on the ratings of priority debt VTB Capital SA (Now at Baa1) and subordinated debt ratings of Northwest Regional Center of VTB Bank (Baa2). Such actions of rating agency with respect to predictions on ratings of banks and companies, VTB Group - a consequence of the impending consolidation of the Bank of Moscow, who is having financial problems.
The procedure for financial recovery of the Bank of Moscow, in which VTB 46.48%, was launched on June 30. On this day, the Board of Directors of the Bank of Russia approved the plan for the involvement of Deposit Insurance Agency (DIA) in the prevention of bankruptcy "Bank of Moscow". For these purposes will be allocated 295 billion rubles. support funds - from their DIA (which will give appropriate credit to the Central Bank) will receive the Bank of Moscow. Another 100 billion rubles. in the capital of the Bank of Moscow to build himself VTB. The condition for the transfer of funds from the state is the consolidation of VTB Group to 75% of the shares of the Bank of Moscow, scheduled for completion by the end of July. Now I live in VTB is owned 46.48% stake in Bank of Moscow. After consolidation own 75 per cent stake will be two 100-percent "daughter" VTB - "VTB Pension Administrator" and "VTB Debt Centre".
Moody `s action against Outlooks VTB followed the deterioration of the ratings of Bank of Moscow, with some delay. In late June, Moody `s before making a decision on reorganization of the Bank of Moscow has worsened the financial strength rating of Bank of Moscow from D to D-, deposit ratings - from Ba2 to Ba1. The reason was the high information uncertainty with respect to the Bank of Moscow, in particular, because of failure to timely audited financial statements under IFRS. His ratings have been placed under surveillance with an early decline. Ratings VTB Moody `s then affirmed, explaining that he did not expect to further increase investments in this asset VTB. Nevertheless, the bank's rehabilitation plan did not meet those expectations - from the need to invest in VTB Bank of Moscow has almost as much as the state bank has spent on this controversial trade (103 billion rubles).. Apparently, this was one reason for the revision of ratings of VTB.
However, while a significant negative impact on the VTB reduced forecast on ratings is not rendered. On the contrary, today, the bank reported that drew a record for Russian borrowers in the syndicated loan volume of $ 3.13 billion at LIBOR plus 130 basis points. It is interesting that approximately the same amount in terms of Dollars and VTB need to make in the future in the capital of the Bank of Moscow.
At the same today as ratings of the Bank of Moscow, Moody `s has lowered again. Financial strength rating of Bank downgraded to D-to E +, Long-term subordinated debt in foreign currency - from Ba2 to Ba3. Ratings outlook - "negative". Another reduction rating refers to the fact the official recognition of the problems the bank's asset quality and understanding of large-scale problems. As explained by the agency, "negative" outlook on the bank reflects the risks that the process of readjustment can be interrupted or postponed due to the fact that the state bank VTB will not be able to consolidate needed to get state help finance 75% of the Bank of Moscow. In this case, the financial strength ratings of the former city government bank support may be lowered again.
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