Moody's may downgrade Russian banks' ratings

2011-10-11 12:56:21

Moody’s international rating agency could downgrade the ratings of Russian banks if their capital adequacy ratio falls to 10 percent from 16.7 percent in the middle of 2011 against a background of global uncertainty and fears of a new crisis, the agency said on Tuesday.

If the 2008 economic crisis scenario is repeated, it will cut banking profits and capital adequacy ratios will decrease as a result, the agency said in a statement.

Banks which are most susceptible to asset quality deterioration and problems with liquidity run the risk of rating downgrade, it added.


RIA Novosti