18:32 GMT26 January 2020
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    The list comprises Russia's largest lender Sberbank, as well as Vnesheconombank and Agency for Housing Mortgage Lending OJSC.

    MOSCOW/LONDON, January 19 (Sputnik) — Moody's Investors Service on Monday downgraded the long- and short-term ratings of three major Russian lenders following its recent downgrade of Russia's government bond rating, the agency said.

    The list comprises Russia's largest lender Sberbank, as well as Vnesheconombank and the Agency for Housing Mortgage Lending OJSC.

    "The weakening of Russia's credit profile has prompted the rating actions on the three financial institutions that are rated at the same level as the government bond rating," the agency said in a statement.

    On January 16, Moody's downgraded Russia's government bond rating to Baa3 from Baa2 and placed it under review for further a downgrade.

    Moody’s based its decision on the fact that Russia’s economy had been affected by “severe oil price and exchange rate shock”, saying that these factors may further undermine the prospects for the country’s economy growth.

    The Russian economy is now facing a backlash from Western sanctions that were imposed on Moscow over Ukraine, although the Kremlin has repeatedly denied any involvement in the country's internal crisis. Another reason for the downturn is a sharp decline in oil prices, as Russian budget is highly dependent on energy exports.

    In December, Russian President Vladimir Putin announced that the Russian economy would soon recover despite the current difficulties.


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    rating, finance, Sberbank, Vnesheconombank, Moody's, Russia
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