Moody's on Dec. 7 assigned Russia-based JSC The Agency for Housing Mortgage Lending baseline and adjusted baseline credit assessments of "ba2".
At the same time, the agency affirmed the company's Ba1 long-term local- and foreign-currency issuer and long-term local-currency senior unsecured debt ratings, Not-Prime short-term issuer ratings and Ba1(cr)/Not-Prime(Cr) counterparty risk assessments. The outlook on the long-term issuer ratings is stable.
The action follows the Russian government's decision to transfer its 100% holding in Bank Rossiysky Capital (PJSC) to the Agency for Housing Mortgage Lending. The assignment of the baseline credit assessment reflects the current balance between the company's key credit strengths, which include prudent risk management, and weaknesses, which include its wholesale funding reliance.
Moody's expects the integration of Bank Rossiysky Capital to increase the Agency for Housing Mortgage Lending's leverage while also reducing profitability.