Moody's says Russia's weak macro outlook will pressure Russian banks' asset quality and net profits

London, 16 April 2014 -- Russian banks' asset quality and profitability will weaken as the country's economy is likely to contract this year, says Moody's Investor's Service in a new report published today. As noted in March, Moody's believes that Russian GDP will contract by around 1% in 2014, with the recent financial market volatility exacerbating a secular shift to lower growth, which began in 2011. This deterioration in the operating environment has led Moody's to maintain a negative outlook on Russia's banking system for some time, and has contributed to many of the rating agency's recent negative rating actions on Russian banks.

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