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. Last Updated: 07/27/2016

Thomson Lowers Tokobank Rating

Bank credit rating agency Thomson BankWatch said Tuesday that it had downgraded Russia's Tokobank's short-term local currency debt rating to LC-3 from LC-2.

The Russian Central Bank placed Tokobank under temporary administration for two months last Friday, citing poor management and liquidity problems threatening clients and creditors.

Thomson BankWatch said in a statement that sustained adverse media comments had led to an outflow of client deposits and sharply cut interbank lines, although 1997 IAS accounts showed a reasonably satisfactory year-end situation.

"Though the Central Bank has not, as of today, injected substantial liquidity into Tokobank, management emphasizes that it has not defaulted on any international or local obligations," the statement said.

Tokobank, in which the European Bank for Reconstruction and Development has a 9.6 percent stake, is one of Russia's 20 biggest banks.

"Tokobank's main problems are low interest income and a weak treasury," a Thomson BankWatch analyst said.