Moody’s Investors Service has upgraded on Thursday Romania’s Raiffeisen Bank long-term and short-term local and foreign-currency deposit ratings to Baa3/Prime-3 from Ba1/Not Prime, as a press release informs.
The rating agency also changed the outlook on Raiffeisen Bank International (RBI) subsidiary in Romania and its long-term deposit ratings to stable from positive.
At the same time, the bank’s adjusted baseline credit assessment was upgraded to ba2 from ba3 and its long-term and short-term Counterparty Risk Assessment (CRA) to Baa2 from Baa3. Raiffeisen Bank SA’s ba3 BCA, which is not affected by today’s action, is supported by the bank’s good financial performance, capitalisation and liquidity, which it has maintained in recent years.
“Upward pressure on Raiffeisen Bank SA’s ratings could develop from a material improvement in the operating environment, and if the bank achieves stronger loan book quality while maintaining good capital adequacy and profitability. Alterations in the bank’s liability structure may change the amount of uplift provided by Moody’s Advanced LGF analysis and lead to a higher notching from the bank’s adjusted BCA, thereby positively affecting deposit ratings.
The bank’s ratings could experience downward pressure as a result of substantial weakening in its profitability, erosion of its capital base and/or increase in asset risk,” the release reads.
The outlook on Raiffeisen Bank SA’s deposit ratings has been changed to stable from positive, in line with the outlook on the parent bank’s ratings.
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