OREANDA-NEWS.  National Rating Agency has withdrawn its national scale credit rating on FundServiceBank OJSC (FSB) after having lowered it to ‘B+’.

The rating downgrade is driven by the fact that our fears that the regulator would re-assess FSB’s asset quality and request the bank to provide additional loan loss reserves proved well-founded. As a result, the bank’s capital turned negative. Currently the bank has gone under administration by the state-owned Deposit Insurance Agency. We also note the uncertainty around FSB’s further relationship with the Federal Space Agency (FSA) and believe it is very likely that the existing bank-depositor agreements will be revised and the FSA will gradually remove its money from the bank.  

That said, we continue to give credit to FSB’s adequate and highly liquid asset base and ability to fulfill all obligations to its customers in full and in a timely manner.