Moody's on March 2 downgraded PJSC Transkapitalbank's long-term foreign-currency bank deposits to B2 from B1, with a negative outlook.
The rating agency also lowered the Russian bank's baseline and adjusted baseline credit assessments to "b2" from "b1" and its long-term counterparty risk assessment to B1(cr) from Ba3(cr).
The downgrade reflects that the bank's financial metrics have weakened, based on worsened asset quality, a limited capital buffer in the context of elevated under-provisioned problem loans and weakened recurring profitability.
Transkapitalbank is discussing a financial rehabilitation plan for unit JSCB Investment Trade Bank (PJSC) with the regulator which, if agreed, will help the bank's capital buffer and be used for provisioning coverage of existing high problem loans, Moody's said.
