Recipient email addresses will not be used in mailing lists or redistributed.
Use semicolon to separate each address, limit to 20 addresses.
characters you see
You have successfully sent the research.
Please note: some research requires a paid subscription in order to access.
Already a customer?
Don't want to see this again?
Accept our to continue to Moodys.com:
AND SCROLL DOWN!
By clicking “I AGREE” [at the end of this document],
you indicate that you understand and intend these terms and conditions to be
the legal equivalent of a signed, written contract and equally binding, and
that you accept such terms and conditions as a condition of viewing any and all
Moody’s information that becomes accessible to you [after clicking “I AGREE”] (the
“Information”). References herein to “Moody’s” include Moody’s
Corporation, Inc. and each of its subsidiaries and affiliates.
Terms of One-Time Website Use
you have entered into an express written contract with Moody’s to the contrary,
you agree that you have no right to use the Information in a commercial or
public setting and no right to copy it, save it, print it, sell it, or publish
or distribute any portion of it in any form.
acknowledge and agree that Moody’s credit ratings: (i) are current opinions of
the future relative creditworthiness of securities and address no other risk; and
(ii) are not statements of current
or historical fact or recommendations to purchase, hold or sell particular
securities. Moody’s credit ratings and
publications are not intended for retail investors, and it would be reckless
and inappropriate for retail investors to use Moody’s credit ratings and
publications when making an investment decision. No
warranty, express or implied, as the accuracy, timeliness, completeness,
merchantability or fitness for any particular purpose of any Moody’s credit
rating is given or made by Moody’s in any form whatsoever.
3. To the extent permitted by law, Moody’s and its directors,
officers, employees, representatives, licensors and suppliers disclaim
liability for: (i) any indirect, special, consequential, or incidental losses
or damages whatsoever arising from or in connection with use of the
Information; and (ii) any direct or compensatory damages caused to any person
or entity, including but not limited to by any negligence (but excluding fraud
or any other type of liability that by law cannot be excluded) on the part of
Moody’s or any of its directors, officers, employees, agents, representatives,
licensors or suppliers, arising from or in connection with use of the
4. You agree to read [and
be bound by] the more detailed disclosures regarding Moody’s ratings and the
limitations of Moody’s liability included in the Information.
5. You agree that any disputes relating to this agreement or your use of
the Information, whether sounding in contract, tort, statute or otherwise,
shall be governed by the laws of the State of New York and shall be subject to
the exclusive jurisdiction of the courts of the State of New York located in
the City and County of New York, Borough of Manhattan.
04 Dec 2006
Moody's Downgrades Finansbank (Holland) NV; Upgrades Finansbank Russia
Action Concludes Ratings Reviews Started in April 2006; all Ratings have a Stable Outlook.
London, 04 December 2006 -- Moody's Investors Service has today downgraded the Baa2/P-2 deposit
ratings and C- financial strength rating (FSR) of Finansbank (Holland)
N.V., Amsterdam ("FBH") to Baa3/P-3/D+
and the Baa3 rating for Subordinated Floating Rate Euronotes issued by
FBH to Ba1. At the same time, Moody's has upgraded
the long term local and foreign currency deposit ratings of Finansbank
(Russia) Ltd. ("FBR") to Ba1 from Ba2. The Senior
Unsecured rating on the Loan Participation Notes issued by Finansbank
Russia through a Luxembourg based vehicle has also been upgraded to Ba1
from Ba2. By the same action, Moody's has confirmed
FBR's D- FSR. Moody's Interfax Rating Agency
has upgraded FBR's National Scale Rating to Aa1.ru from Aa2.ru.
FBR's short-term foreign and local currency deposit ratings
are unaffected by this action and remain at Not-Prime (NP).
All ratings have a stable outlook.
Following the April 2006 announcement by Finansbank A.S.
of Turkey -- the parent bank of FBR and FBH at the time -- that
the National Bank of Greece would buy the Turkish bank and sell its international
holdings, including FBH and FBR, back to the FIBA Group,
Moody's placed all of FBH's ratings and FBR's D-
financial strength rating on review for possible downgrade. At
the same time, FBR's local and foreign currency deposit ratings,
its senior unsecured rating, and its National Scale Rating were
all placed on review with direction uncertain, as it became apparent
that majority control of FBR's equity would transferred from Fiba
International Holding, a Netherlands-based holding company,
to FBH, which is 100% owned by Fiba International Holding.
Today's rating action concludes these reviews.
In downgrading the ratings of FBH, Moody's recognises the
material change in the risk profile of the Amsterdam-based bank
in having acquired 95% of FBR, as well as the possible strain
on its capital adequacy ratios going forward given the planned rapid growth
of FBR's risk assets. FBR's assets account for an indicated
25% of FBH's expanded asset-base and 32% of
its shareholders' funds as at 30 September 2006, the first
period for which a consolidated balance sheet is available; FBR appears
to contribute around 20% of the net earnings of FBH on a proforma
basis for the first eight months of 2006. Moody's welcomes
the reduced weight of Turkey in the geographical profile of the payment
risk in FBH's consolidated assets resulting from the acquisition
of control of FBR, as well as the diminution of the importance of
related party lending. However, Moody's views retail
and small-to-medium-sized enterprise (SME) lending
in Russia to be subject to greater risks and uncertainties than the lending
activities of FBH prior to the acquisition of FBR, which was largely
Furthermore, Moody's understands that the current pace of
expansion and the planned expansion of FBR's lending volumes and
- to a lesser extent - the existing trade finance activities
at the level of the FBH parent company bank will together result in FBH's
owners having to inject capital in the expanded bank again by the end
of 2007, having already started a process to increase capital by
the end of 2006. In contrast, FBH had been able to generate
and retain sufficient earnings to ensure a solid level of regulatory capitalisation
for a number of years up to and including 2005. Moody's notes
that FBH's and FBR's ultimate shareholder -- the Ozyegin
family and their investment vehicle FIBA Holding -- has not changed
and that in its opinion, the ultimate shareholder maintains both
the ability and the willingness to continue to provide FBH and FBR with
the capital resources periodically required to fund the banks' rapid
growth. However, Moody's cannot view this in the same
light as capital already being in place to support planned expansion.
However, Moody's said the existing franchise and earnings
power of FBH seems well placed to withstand a separation from the former
Turkish parent bank as well as a brand-name change. The
original decision to place FBH's ratings on review for possible
downgrade had related to the existence of a number of conditions related
to the agreement for NBG to sell the non-Turkish operations of
Finansbank A.S. to FIBA Holding. In particular,
it had been indicated that there would be conditions including (i) restriction
on FBH's operations involving Turkish and Turkish-owned corporate
clients to those clients it already (ii) a cap on FBH's maximum
lending and committed facility volumes to such clients for a period of
three years and (iii) an undertaking on FBH, FBR and other banks
to be owned by FIBA Holding to change their brands within twelve months.
On having carried out its review, Moody's conclude that the
restrictions have not hampered growth in FBH's trade finance activities
-- taking into account on-balance sheet positions and off-balance
sheet commitments, Moody's notes that trade finance related
credit rose 23% from end-December 2005 to end June 2006
and a further 13% from end-June to the end of August prior
to the consolidation of FBR into the accounts. At the same time
net interest margins have improved significantly despite a marked reduction
in holdings in high yield bonds. This durability of core revenue
appears to be attributable to the extent of business generated with corporate
clients located outside Turkey and to the rapid expansion to a niche relating
to financing of iron ore and non-ferrous commodities trade internationally,
with clients not related to Turkey. Furthermore, the costs
of re-branding -- to Credit Europe Bank - are projected
to be minor and should not affect a mainly corporate-business based
customer franchise which is not based on the customer contacts and brand
of the former Turkish parent bank but rather built on the contacts and
know-how of a distinct group of expatriate of managers of long-standing
within FBH and FBR who remain within these two banks and its holding group.
In upgrading FBR's deposit and debt ratings, Moody's
reflects its opinion that direct majority ownership by FBH, a Netherlands-regulated
bank, enhances FBR's debt and deposit ratings. Placing
FBR's debt and deposit ratings within one notch of those of Finansbank
Holland underscores Moody's belief that there is a high likelihood
that Finansbank Holland would provide support to FBR in the event of need.
Moody's notes that its earlier decision to place FBR's bank
financial strength rating (BFSR) on review for downgrade reflected the
uncertainty surrounding the bank's ownership structure, the
composition of management, and the bank's access to funding
and other resources, as well as the costs of re-branding
and its effects on FBR's franchise and business model. In
confirming FBR's BFSR at D-, Moody's notes that
the bank's ownership structure has now been favourably resolved,
and remains transparent, which is often not the case with Russian
banks of a similar size. Moreover, FBR's relatively limited
exposure to related parties is expected to continue. In addition,
the current management team, which leverages knowledge of and expertise
in retail and SME banking across many European markets and has been instrumental
in leading the bank, will remain in place. FBR benefits considerably
from access to group resources, knowledge and skills, particularly
in retail and SME banking in various European markets, which represents
a significant advantage relative to other Russian banks of a similar size.
With a group presence in Holland, Switzerland, Russia and
Romania, and continued access to FIBA Group resources in Turkey,
we believe that FBR's strength in this area will be unaffected by
the ownership change. Finally, although the costs of re-branding
are not insignificant, they are projected to be relatively minor
compared to the bank's operating income, while no major negative
impacts or changes on the bank's business model are expected to
Moody's indicated that developments that could potentially move
both FBH's and FBR's ratings up include (i) reduction of FBR's
high non-performing loan levels while ensuring better provisioning
coverage of problem loans in Russia; (ii) the demonstrated ability
to maintain a high level of capital adequacy without relying on periodic
injections from the ultimate shareholder; and (iii) successful diversification
of FBH's consolidated assets and earnings towards countries and
activities entailing lower risks. Potential developments that could
potentially move both FBH's and FBR's ratings down include:
(i) continued increases in NPL levels in Russia or failure to increase
provisioning substantially (ii) delays in the ultimate shareholder providing
capital injections to ensure a solid level of capitalisation (iii) unforeseen
negative impacts on the banks' business models or financial fundamentals
resulting from the re-branding commitments related to the change
in ownership; and (iv) other banks with a higher risk profile being
brought into FBH's scope of consolidation.
Finansbank (Holland) N.V., founded in 1994 and headquartered
in Amsterdam, the Netherlands, had consolidated total assets
of EUR2048 million and shareholders` equity of EUR191 million at 30 June
2006, prior to the consolidation of Finansbank Russia Ltd.
As at 30 September 2006, following the first time consolidation
of Finansbank Russia Limited, FBH had consolidated total assets
of EUR3088 million and shareholders` equity of EUR281 million
Finansbank Russia Ltd., founded in 1997 and headquartered
in Moscow, Russia, had total assets of USD 636.6 million
and shareholders` equity of USD 61.4 million at 30 June 2006.
The following ratings of Finansbank (Holland) N.V. have
- Bank Financial Strength Rating downgraded to D+
- Long Term Bank Deposit Rating downgraded Baa3
- Short-term Bank Deposit Rating downgraded to P-3
- Subordinated Floating Rate Euronotes downgraded to Ba1
The following ratings of Finansbank Russia Ltd. have been affected:
- Bank Financial Strength Rating confirmed at D-
- Long Term Foreign Currency Bank Deposit Rating upgraded to Ba1
- Long Term Local Currency Bank Deposit Rating upgraded to Ba1
- Senior Unsecured Rating (Loan Participation Notes Issued through
a Luxembourg based vehicle) upgraded to Ba1
- National Scale Ratings upgraded to Aa1.ru
Vice President - Senior Analyst
Financial Institutions Group
Moody's Investors Service Ltd.
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
Asst Vice President - Analyst
Financial Institutions Group
Moody's Investors Service Cyprus Limited
JOURNALISTS: 44 20 7772 5456
SUBSCRIBERS: 44 20 7772 5454
No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.
CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.
MOODY’S CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY RETAIL INVESTORS AND IT WOULD BE RECKLESS AND INAPPROPRIATE FOR RETAIL INVESTORS TO USE MOODY’S CREDIT RATINGS OR MOODY’S PUBLICATIONS WHEN MAKING AN INVESTMENT DECISION. IF IN DOUBT YOU SHOULD CONTACT YOUR FINANCIAL OR OTHER PROFESSIONAL ADVISER.
ALL INFORMATION CONTAINED HEREIN IS PROTECTED BY LAW, INCLUDING BUT NOT LIMITED TO, COPYRIGHT LAW, AND NONE OF SUCH INFORMATION MAY BE COPIED OR OTHERWISE REPRODUCED, REPACKAGED, FURTHER TRANSMITTED, TRANSFERRED, DISSEMINATED, REDISTRIBUTED OR RESOLD, OR STORED FOR SUBSEQUENT USE FOR ANY SUCH PURPOSE, IN WHOLE OR IN PART, IN ANY FORM OR MANNER OR BY ANY MEANS WHATSOEVER, BY ANY PERSON WITHOUT MOODY’S PRIOR WRITTEN CONSENT.
CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.
All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.
To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.
NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.
Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com
under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”
Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.
Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.
MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.
MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.