Fitch Ratings has placed the ratings of Bank of Moscow, including its Long-term Issuer Default Rating (IDR) of BBB-, on Rating Watch Negative (RWN), the international ratings agency said Wednesday.
The rating actions follow President Dmitry Medvedev's dismissal Tuesday of Yury Luzhkov after 18 years as Moscow's mayor.
"The RWNs on the Issuer Default and Support ratings reflect Fitch's view that there is a risk of deterioration in the relationship between the bank and the city following the appointment of the new mayor and city government," Fitch said.
"This view takes into account the close association between the bank and the outgoing city administration, the significant volumes of business between the bank and entities closely associated with the current city authorities and the apparently quite confrontational nature of the change of power in the city," it said.
The Kremlin cited "loss of confidence" as the reason for Luzhkov's dismissal, which came after an unprecedented smear campaign by state-backed TV, accusing Luzhkov of negligence, callousness and corruption.
MOSCOW, September 29 (RIA Novosti)
