MOSCOW, May 13 - Risky lending strategies are one of the key contributors to the high level of mortgage default rates in the Commonwealth of Independent States during the global economic crisis, Moody's Investors Service said in a special comment.

The agency said in a statement: "The report focuses specifically on Russia, Kazakhstan and Ukraine, i.e. the three countries in CIS having demonstrated the most intensive development of mortgage lending in the pre-crisis years. Moody's discusses the impact of the macroeconomic, legal and regulatory factors in CIS on the mortgage lending default and recovery rates. The report also provides a brief review of how the performance of mortgage loans affected the financial fundamentals of those CIS banks actively involved in that market segment. Moody's observed some stabilization of the deterioration trend in H2 2009 after a surge in mortgage default rates during late 2008-H1 2009; however, the rating agency cautions that migration of already defaulted loans back to performing category is unlikely.