Nova KBM
 

Fitch changed the ratings of Nova KBM | NKBM

In accordance with the Ljubljana Stock Exchange Rules and the Financial Instruments Market Act, the Nova KBM Management Board hereby gives the following notice:

Fitch changed the ratings of Nova KBM

27 December 2013
OBVESTILA
In accordance with the Ljubljana Stock Exchange Rules and the Financial Instruments Market Act, the Nova KBM Management Board hereby gives the following notice:
 

The rating agency Fitch affirmed the Long-Term Issuer Default Rating (Long-Term IDR) of Nova KBM at 'BB-', with a negative outlook. The Viability Rating was upgraded to 'b-' (this rating was first downgraded to 'f' from 'ccc', and subsequently upgraded to 'b-'), with Nova KBM being placed on Rating Watch Positive. Other ratings remained unchanged as follows: the Short-Term IDR was affirmed at 'B'; the Support Rating was affirmed at '3'; and the Support Rating Floor was affirmed at 'BB-'. The rating of hybrid instruments issued by Nova KBM was affirmed at 'C' and withdrawn.


Rating actions on Nova KBM were as follows:

  • Long-Term Issuer Default Rating: affirmed at 'BB-', Outlook Negative
  • Short-Term Issuer Default Rating: affirmed at 'B'
  • Viability Rating: downgraded to 'f' from 'ccc', subsequently upgraded to 'b-' from 'f', placed on Rating Watch Positive
  • Support Rating: affirmed at '3'
  • Support Rating Floor: affirmed at 'BB-'
  • Hybrid capital instrument: affirmed at 'C', rating withdrawn


The rating actions on Nova KBM reflect the measures taken by the Government of the Republic of Slovenia to strengthen the stability of the Slovene banking system. Fitch believes the Slovene authorities will continue to provide support for Nova KBM, in case of need, given its systemic importance and state ownership. According to Fitch, the Long-Term IDR could stabilise at its current level, or be upgraded, if Nova KBM´s Viability Rating is upgraded to 'bb-' or higher, based on the results of upcoming reviews.