Moody's assigns B1/NP/E+ ratings to Albanian bank BKT, outlook stable.

By bne IntelliNews January 28, 2011
International credit rating agency Moodys has assigned B1/Not Prime local-currency deposit ratings to Albanian bank Banka Kombetare Tregtare (BKT), the agency said on its website. Moodys has also assigned a standalone bank financial strength rating (BFSR) of E+, mapping to a B1 baseline credit assessment, and a B2/Not Prime foreign-currency deposit ratings to BKT. All of the ratings carry a stable outlook. The E+ standalone BFSR reflects BKT's high credit concentrations, compounded by very large holdings in Albanian government securities. The assessment also takes into consideration Albanias relatively untested regulatory environment. Although, governments willingness to provide support to BKT in case of need is high, it will be limited due to risk of inflationary pressure and devaluation of the local currency. The B2 foreign-currency deposit rating is constrained by Albanias foreign-currency deposit ceiling. BKT is a wholly-owned subsidiary of Turkish holding group Calik. It is Albanias second-largest lender in terms of assets, preceded only by Austrian Raiffeisen Bank. BKT doubled net profit in the first half of 2010 to USD 12.7mn.

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