08 July 2010, Thursday, 13:07

Moody’s upgraded the forecast on MDM Bank to stable

author: Elvira Latypova

International rating agency Moody's Investors Services has changed from "negative" to the "stable" forecast on ratings of financial stability of MDM Bank (BFSR) – being on the «D» level, long-term local Ba2 and the deposits rating in foreign currency.

According to the Moody’s, rating reflects the increased liquid position of MDM Bank and high level of capitalisation, and also successful completion of MDM-bank and URSA Bank incorporation. The agency marks that the incorporated bank kept and improved its corporate structure and basic financial indicators. The incorporation as a whole favorably influenced on presence of MDM Bank in the market and recognition of the brand in addition to the corporate governance and risk-management practices.

The forecast change also reflects high ability of the bank to absorb losses and its strong potential in creation of incomes, allowing the MDM Bank to become a single large Russian bank which did not address for the assistance to the government or shareholders to maintain sufficient level of the capital during the economic crisis.