Sun, Nov 22 2009

Moody's cuts outlook on Bulgarian banking system

Fri, Jan 16 2009 10:56 CET byDnevnik.bg 283 Views

Global credit rating agency Moody's said it has lowered the outlook on the Bulgarian banking system from "stable" to "negative" on worries over the market's fundamental credit conditions in the next 12 to 18 months.

The agency also changed to "negative" the outlook on the deposit ratings of DSK Bank and Raiffeisenbank Bulgaria and on all ratings of First Investment Bank and MKB Unionbank. DSK Bank is owned by Hungary's OTP group, while MKB Unionbank is a unit of Hungarian lener MKB, itself owned by Bayerische Landesbank.

The change in the credit outlook on Bulgaria's banking system and the outlook on the ratings of individual banks reflects the weakening operating environment in Bulgaria and expectations that it will have a severe impact on the banks' financial fundamentals, mainly profitability and asset quality, Moody's analyst Elena Panayiotou said.

Source: Dnevnik

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