OREANDA-NEWS. RusRating has cancelled the credit rating of Millennium Bank (ZAO) after lowering it from “C” to “D” on the international scale and from “CC” to “C” on the national scale.

The rating cut and cancellation reflects the Central Bank of Russia’s decision to cancel the Bank’s license on 5 February 2016 in response to its violation of norms laid down in federal law and CBR regulations, specifically a fall in all capital adequacy ratios to below 2% and a decline in own funds to below the absolute minimum effective on the date of the Bank’s registration. The loss of capital was caused by the creation of additional reserves. The Bank’s inability to cover cash obligations to creditors was also a contributing factor.