Moody’s Investors Service has today placed on review for downgrade Raiffeisen Bank SA’s (Raiffeisen Bank) Ba1 long-term deposit and debt ratings. The bank’s D- Bank Financial Strength rating (BFSR), equivalent to a baseline Credit Assessment (BCA) of ba3 and Not Prime short-term ratings were affirmed. The outlook on the BFSR remains stable.
This rating action follows Moody’s action on Raiffeisen Bank’s parent, Raiffeisen Bank International AG (RBI) on 23 December 2014 whereby the rating agency downgraded RBI’s long-term deposit ratings to Baa1, from A3, and the BFSR to D (equivalent to ba2 BCA), from D+ (equivalent to ba1 BCA), and placed them on review for further downgrade.
The review for downgrade reflects the possibility that the one notch uplift from parental support may be removed, and as a result the long-term deposit and debt ratings of Raiffeisen Bank will be lowered, in the event of a further downgrade of RBI’s standalone BFSR, which is also under review.
As far as Raiffeisen Romania is concerned, Moody’s confirmed the D- Bank Financial Strength rating, with a stable outlook, as well as the ratings for short-term debts.