July 25 (SeeNews) - Moody's Investors Service said that it has completed a periodic review of the ratings of Raiffeisenbank Bulgaria, which did not involve a rating committee.
The review was conducted through a portfolio review in which Moody's reassessed the appropriateness of the lender's ratings, and a comparison of the financial and operating profile to similarly rated peers, Moody's said in a statement on Wednesday.
The publication does not announce a credit rating action and is not an indication of whether or not a credit rating action is likely in the near future, the ratings agency noted.
Moody's also said in its statement:
"Raiffeisenbank (Bulgaria) EAD's (RBB) Baa2 deposit rating is driven by (1) its ba2 standalone Baseline Credit Assessment (BCA); (2) one notch of affiliate support uplift from Moody's assessment of a high likelihood of support from its Austrian parent, Raiffeisen Bank International AG (deposits: A3 stable, BCA: baa3); and (3) two notches of rating uplift from the application of Moody's Advanced Loss Given Failure (LGF) analysis.
RBB's ba2 standalone BCA captures the bank's improved asset quality and its solid capitalisation. The BCA also reflects recent strong loan growth that leaves part of the bank's loan book unseasoned, and Moody's expectation that strong competition will continue to put pressure on margins and profitability.
This document summarizes Moody's view as of the publication date and will not be updated until the next periodic review announcement, which will incorporate material changes in credit circumstances (if any) during the intervening period."
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