Moody's Bank Ratings: Moody's Takes Multiple Rating Actions on Russian Banks.

1. Moody's Takes Multiple
Rating Actions on
Russian Banks
April 2, 2013 8:39am ET
By Sarka Halas
Moody’s Bank Ratings: placed the long-term senior debt and deposit
ratings of Russian banks on review for downgrade Tuesday, citing the
Russian government's potentially reduced ability to support them if
needed.

2. Moody's Investors Service placed the long-term senior debt and deposit
ratings of Russian banks on review for downgrade Tuesday, citing the
Russian government's potentially reduced ability to support them if needed.
Sberbank (SBER.RS) rated A3, Bank VTB (VTBR.RS) rated Baa1, VTB24
rated Baa1, and Russian Agricultural Bank rated Baa1 are all on review for
downgrade.
Moody's said the risk of a decline in oil prices could affect the Russian
government's ability to generate enough cash to help the country's banks if
they needed it. If the price of oil was to fall, the Russian government would
also be under pressure to support other entities such as large industrial
companies and sub-sovereigns.
Moody's however, expects high oil prices in 2013.

3. The ratings firm also cited the progress of the government's bank
privatization plans as reason for the review, seeing a risk over how willing the
government would be to provide systemic support to banks. Moody's said the
privatization plan could lead to the inclusion of market solutions regarding the
provision of support for large troubled banks, adding that Russian banks face
risks related to the euro-zone crisis, such as those recently highlighted by
negative developments in Cyprus.
Moody's also put on review the subordinated debt ratings of six Russian
banks, including Gazprombank (GZPR.RS) and Alfa Bank among other
financial entities. The move was driven by its concerns that the risk profile of
junior debt may have increased in Russia due to the global trends of
imposing losses on junior creditors as part of bank bailouts orchestrated by
governments.
Write to Sarka Halas at sarka.halasova@dowjones.com