Moody's cuts AsiaUniversalBank

Moody's Investors Service said it downgraded the long-term local- and foreign-currency deposit ratings of AsiaUniversalBank to Caa2 from Caa1 and placed them on review for a possible further downgrade. The E bank financial strength rating of the bank and not-prime short-term deposit ratings remain unchanged.

Moody's said the downgrade was triggered by the severe political crisis that hit the country last week, subsequent decision of the National Bank of the Kyrgyz Republic to take the bank under the temporary administration for a period of up to six months and the decision of the attorney of the city of Bishkek to seize its assets, effectively resulting into a deposit freeze on the bulk of the bank's customer deposits.

The agency said it remains concerned about the sustainability of the bank's operations in the longer term.

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