Moody’s (the international rating agency) has recently downgraded Alfa-Bank’s financial stability rating from D+ to D. At the same time, the bank’s foreign and national currency deposit ratings were affirmed at Ва1/Not, Prime, while its subordinated debt rating (in foreign currency) was also affirmed at Ва1. Nevertheless, all of these ratings have been placed on the Rating Watch, with Negative Rating Outlook.

Moody’s explains the rating demotion has to do with the increasingly troubled state of the Russian macro-economy, which, in its turn, leads to the weakening of businesses’ assets. The agency also says Alfa-Bank depends a little too much on the building industry, that is, the sector most badly affected by repetitive downfalls. What is more, about 50% of the bank’s assets and liabilities are kept in foreign currency, which makes the company particularly vulnerable to the exchange rate fluctuations.