Expert RA Downgraded Volzhsky Social Bank Creditworthiness Rating
OREANDA-NEWS. 'Expert RA' rating agency downgraded 'Volzhsky Social Bank' (LLC) creditworthiness rating to С++, which means low credit solvency, the rating outlook is developing. In this case, the developing outlook means equal probability of changing and maintaining the rating in the mid-term. The Bank used to have rating B++, which means acceptable credit solvency, with the stable outlook.
Interruption of the Bank's operations is the key factor that has determined downgrading of the Bank rating. Together with the lack of access to significant sources of additional liquidity, this may complicate servicing of the Bank's current liabilities greatly. In addition, low capital adequacy combined with its suboptimal structure and high equity immobilization by investments into property and CMFs still exert pressure on the rating.