New York, July 31 (FinanceEnquiry.com) – Analysts at Moody’s Investors Service has downgraded Raiffesien (Bulgaria)’s long and short term local and foreign currency deposit ratings from Baa3 to Ba1. The outlook on the rating stays stable.
In a research note published yesterday, the analysts mention that the rating action indicates Bulgaria’s challenging operating environment, Raiffeisenbank’s asset quality deterioration and Moody’s expectation of further deterioration due to bank’s exposures to the construction and real estate and high concentrations and subsequent pressure on the bank’s profitability, stemming from relatively high provisioning requirements and subdued loan growth.
Moody’s posted that the downgrade of the standalone BFSR indicates both the recent deterioration in financial performance, owning to the challenging operating environment and Moody’s expectation that the weak economic prospects would constrain the bank’s ability to stabilize and improve its asset quality and profitability metrics.
However, the stable outlook on Raiffeisenbank’s ratings indicates the bank’s solid franchise, strong capital levels and adequate liquidity. Firstly, the rating agency recognizes that Raiffeisenbank benefits from a good domestic franchise as the fourth-largest institution in Bulgari due to strong brand recognition and a good presence in the corporate sector and then the bank maintains sound capitalisation buffers, with a Tier 1 ratio of 16 percent, according to bank’s 2011 financial statements, which provides a cushion to absorb losses and lastly Raiffeisenbank benefits from a growing deposit base in Bulgaria which underpins its adequate liquidity levels, the analysts say.
New York, June 18 (FinanceEnquiry.com) – The yen lengthened losses in opposition to the dollar and the euro in view of the fact that investors waited for the result of the Federal Reserve meeting beginning...Dollar Inches Higher Vs Yen & Euro - June 17, 2013
New York, June 17 (FinanceEnquiry.com) – The dollar inched higher in opposition to the yen and euro at the same time as European shares and Asian shares recovered some of the losses of prior week on June 17....Wall Street Stock Futures Observe Slight Motion - June 14, 2013
By 0.03 percent, NASDAQ 100 index stock futures were high to 2,...Samsung Galaxy S4 Zoom: Big and Buzzing - June 13, 2013
New York, June 12 (FinanceEnquiry.com) – As soon as uncertainties appeared over how early the Federal Reserve would curb its ultra- loose monetary policy, which weighed on the dollar, the euro reached a more...BOJ Lets Down Investors; Bonds, Stocks & Commodities Plummet - June 11, 2013
New York, June 7 (FinanceEnquiry.com) – Showing an indication the economy was rising in a modest manner but not robustly enough to persuade the Federal Reserve to downsize the amount of cash it is driving...Euro Holds Stable against the Dollar - June 6, 2013
New York, June 6 (FinanceEnquiry.com) – With investors prepared to pay attention to what the president of the European Central Bank (ECB) may speak in relation to endeavors to help the bothered euro-zone economy,...