Moody's lowers UniCredit Bank Slovakia long-term deposit rating to Baa1.

By bne IntelliNews October 10, 2011
Moody's Investors Service has downgraded the long-term deposit rating of UniCredit Bank Slovakia (UBS) to Baa1 from A3, with a stable outlook, the ratings agency said on its website. The short-term deposit rating at Prime-2 and the standalone bank financial strength rating (BFSR) of D+ (mapping to Ba1 on the long-term scale) were unaffected. The move followed Moodys recent downgrade of UniCredit's long-term debt and deposit ratings to A2, with a negative outlook, and its standalone BFSR to C- (mapping to Baa1, with negative outlook, on the long-term scale). The lowered ratings on UBS's parent lower also the extent to which Moodys is factoring in the probability of parental support into UBS's deposit ratings. An improvement in the bank's standalone BFSR could put upward pressure on the bank's deposit ratings, but Moodys sees such an opportunity as very limited. An upgrade of UniCredit could also lead to an upgrade of UBSs deposit ratings, but such a possibility is also highly unlikely given the negative outlook on UniCredits ratings. On the other hand, UBSs ratings could move further down in case the banks financial strength deteriorates and in case of a downgrade of UniCredit and/or of Slovakia. UBS total assets stood at EUR 3.7bn at the end of June 2011.
Read in IntelliNews Pro
Get IntelliNews Pro

Related Articles

Slovakia one of possible locations for new BMW plant.

German car maker BMW considers building a new plant in eastern Europe and Slovakia is one of the potential locations, Hospodarske Noviny business daily reported citing BMW's board member Ian ... more

Slovakia jobless rate edges down to 14.7% in February 2013.

Slovakia's unemployment rate in February 2013 fell for the first time in six months going down to 14.7% from 14.8% in January when it reached its highest level in more than 8.5 years, data from ... more

Frances CCN Group considers new plant in Slovakia - report.

France-based CCN Group, a supplier of components for turbines and automobiles, considers building a new plant in Slovakia in the town of Belusa, Hospodarske Noviny daily reported citing unnamed ... more

Follow Us On

Most Read

  1. EU finally boosts defence investment into arms production as Ukraine runs out of ammo
    1 month ago
  2. Don't mention the "D" word - Ukraine
    6 days ago
  3. Ukraine's birth rate plummets to 300-year low as country’s population collapses
    9 days ago
  4. The 'wet-bulb' set to kill hundreds of thousands of people if temperatures and humidity levels continue to rise
    4 days ago
  5. The models are wrong, climate change is accelerating faster than predicted
    1 day ago
  1. Russia could pay off its entire external debt tomorrow, in cash
    27 days ago
  2. Albanians campaign on social media to keep bus bridge created in freak accident
    1 year ago
  3. BRICS announce a blockchain-based payment system to create a common currency
    29 days ago
  4. Speculation swirls of “Men in Blue” in Crocus City Hall terrorist attack linked to FSB
    1 month ago
  5. Saudi Arabia to scale back plans for Neom city
    16 days ago

Reports

Dismiss