Moody's downgrades financial strength rating of several Russian VTB banks

Moody's Investors Service downgraded its financial strength rating of VTB Bank of Austria, VTB Capital and VTB Bank of France to D- from D, with a negative outlook.

All three banks are owned by the Russian Bank VTB, which is currently rated D-.

At the same time, Moody's affirmed the banks' Baa3 long-term global local currency (GLC) deposit ratings, with a stable outlook.

The negative outlook reflects Moody's medium-term expectation that the operating environment in Russia, and globally, would continue to 'negatively impact their financial fundamentals, particularly capitalisation, asset quality, profitability and liquidity.'