Moody's Investors Service said Tuesday that it is reviewing for possible downgrade the ratings of Republic New York Corp. and its subsidiaries.

The review follows Republic's announcement Friday that losses on its Russian bond portfolio would erase its third-quarter earnings. Ratings of Republic's Luxembourg affiliate, Safra Republic Holdings SA, are also under review.

Moody's said the move reflects its concern about the companies' exposure in weakening countries and the impact on profitability.

The current ratings take into account "the relationships among the affiliates and the potential for credit support," Moody's said. However, it added, there is no formal support mechanism, and no explicit credit enhancement from Edmond Safra, the controlling shareholder of both companies.

Among the ratings Moody's is reviewing are Republic New York Corp.'s senior debt, at Aa3; its subordinated debt, at A1; and its preferred stock, at a1.

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