Moody's Downgrades Three Bulgarian Banks' Foreign Currency Deposit Ratings Outlook to Stable

Moody's changed the outlooks on DSK Bank, owned by Hungarian banking group OTP; Raiffeisenbank Bulgaria, part of Austrian banking group Raiffeisen Zentralbank Oesterreich (RZB); and on the Bulgarian unit of Greece's Piraeus Group, Piraeus Bank Bulgaria.

"This rating action follows Moody's decision to change the outlook on Bulgaria's Baa3 foreign currency deposit ceiling to stable from positive," Moody's said in a statement.

On Thursday, Moody's changed the outlook on Bulgaria's Baa3 foreign and local currency ratings to stable from positive and said it is negative on prospects for an upgrade in the next 18 months due to deteriorating external imbalances.

"This ceiling constrains these three banks' foreign currency deposit ratings and therefore any future rating action on the ceiling will also affect these ratings," it said on Tuesday, adding that the ratings of the other rated Bulgarian banks are not affected, as they are not constrained by the country ceiling.

Moody's has affirmed all other ratings and existing outlooks of the three banks.