OREANDA-NEWS. Moody's Investors Service has assigned the following global scale ratings to Avtovazbank: Caa1 long-term and Not-Prime (NP) short-term foreign and local currency deposit ratings and an E financial strength rating (FSR). The outlook on the Caa1 deposit rating and the E FSR is stable.

At the same time, Moody's Interfax Rating Agency has assigned a Ba2.ru long-term national scale credit rating (NSR) to the bank. Moscow-based Moody's Interfax is majority-owned by Moody's, a leading global rating agency.

The bank's E FSR reflects its very short period of activity under the present business model as its acquisition by the current shareholders, which has resulted in a fundamental change in strategy, dates to September 2005 only.

Another key negative rating factor is Avtovazbank's very high asset risk profile, with the loan portfolio concentrated to a significant extent in the financing of real estate projects carried out by related parties of the bank or in lending to companies involved in operations with promissory notes.