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. Last Updated: 07/27/2016

Moody's Drops Outlook on Standart

Moody's dropped its outlook on Russky Standart's ratings from stable to negative Wednesday, citing the bank's weakened liquidity position.

The ratings agency warned that Russky Standart's loan expansion and franchise value could be threatened if its access to international credit markets is limited for a prolonged period.

On Tuesday, Fitch Ratings downgraded Russky Standart bank's long-term issuer default rating to BB-.

"Russky Standart bank's credit profile has suffered as a result of [...] the tighter regulation of consumer lending by Russian state bodies and the tightening of global liquidity," said Alexander Danilov, director in Fitch's Financial Institutions group.

Fitch also noted the possibility of added regulations and the difficulties caused by the limited availability of wholesale funding. But if the bank rides out current pressure and demonstrates continued profitability, an upside to the ratings may appear, the agency said.