Moody’s downgrades Orient Express Bank to Caa1, outlook Negative

MOSCOW, Mar 15 (PRIME) -- International rating agency Moody’s has downgraded the local and foreign currency long-term bank deposit ratings of Russia’s Orient Express Bank (OEB) to Caa1 from B3 and changed the outlook on the ratings to Negative from rating under review, it said in a statement on Friday.

“The rating action concludes the review for downgrade on OEB's ratings and assessments initiated on September 19, 2018. Today's one-notch downgrade of the long-term ratings and assessments reflects corporate governance weaknesses at OEB reflected by a material understatement of problem assets on its balance sheet, as well as an ongoing conflict between its largest shareholders which could disrupt a planned 5 billion ruble share issuance,” the agency said.

In mid-February, the Basmanny District Court of Moscow arrested the bank’s shareholder Michael Calvey and five other defendants for two months over an alleged 2.5 billion ruble embezzlement from Orient Express Bank.

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