04 June 2004 02:49
Fitch downgrades Credittrust to `CC`
LONDON/MOSCOW. June 4 (Interfax) - Fitch Ratings has downgraded Russia-based Commercial Bank Credittrust's
(Credittrust) ratings to International Long-term 'CC' from 'CCC+', National Long-term
'CCC-(rus)' from 'B+(rus)' and Individual 'E' from 'D/E', the agency said in a
press release Friday.
The Short-term rating has been affirmed at 'C'. The International Long-and Short-term ratings and the
National Long-term rating have been placed on Rating Watch Negative. Fitch anticipates resolving the Rating Watch
Negative in the next few weeks.
The rating action follows the news that Credittrust has been placed into voluntary liquidation. Credittrust's
liquidity has been negatively affected in recent weeks by market perceptions of its association with Sodbusinessbank,
whose licence was revoked by the Central Bank of Russia last month. Although retail funds are not a substantial part of
its funding base, Credittrust subsequently suffered from some exodus of such funds and its access to the money markets
weakened considerably. An additional 500 million rubles of new share capital was injected into the bank very recently to
shore up its balance sheet.
Credittrust is a small bank, with assets of less than 9 billion rubles. It is headquartered in Moscow. [RU ASIA
EUROPE EEU EMRG BNK AAA] me
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