Moody's agency lowered the ratings of Sberbank, VTB and other largest banks

Moody's rating agency reduced the ratings of the largest Russian banks - Sberbank, VTB, Rosselkhozbank, Gazprombank, VEB, Alfa Bank, as well as mortgage housing agencies, according to Moody's website.

The relevant ratings of VTB deposits and obligations are reduced from BAA2 to BAA3, Alfa -Bank, Gazprombank and RSHB - from BAA3 to BA1, VEB and AIZHK - BAA1 to BAA2. Short -term VTB, GPB and RSHB are also reduced.

All seven institutions now have a “negative” forecast for changes in long -term ratings, and for the Alfa Bank he is changed from the “stable”, for the rest - left at the same level.

"The weakening of the Russian credit profile, reflected in a decrease in a sovereign debt rating with a negative forecast, led to the rating action on the supported ratings of the financial institutions of Russia with state participation that get an overestimation of the rating for several steps due to the expectations of system support," the Finmarket quotes.

The decision was made after the agency on October 18 lowered the sovereign rating of Russia from BAA1 to BAA2. The agency explained the decrease in the rating with a continuation of the crisis in Ukraine, the expansion of international sanctions, restrictions on Russian business for loans abroad, an outflow of capital and a decrease in oil prices.

Among the financial institutions whose ratings were reduced, five banks (Sberbank, VTB, VEB, Gazprombank and Rosselkhozbank) are under European sanctions . These Russian banks are closed access to bank loans for more than 30 days.

At the end of September, Moody's already lowered the ratings of several Russian banks - East Express and Home Credit, in October - the Renaissance Credit rating.