Nova KBM
 

Moody’s changes the ratings of Nova KBM d.d. | NKBM

In compliance with the Ljubljana Stock Exchange Rules and the applicable legislation, Nova KBM d.d., Maribor, hereby makes the following announcement:

Moody’s changes the ratings of Nova KBM d.d.

26 March 2013
OBVESTILA
In compliance with the Ljubljana Stock Exchange Rules and the applicable legislation, Nova KBM d.d., Maribor, hereby makes the following announcement:
 

On 25 March 2013 Moody's Investors Service downgraded Nova KBM’s long-term deposit rating to Caa2 from B3, with a negative outlook. The junior subordinate ratings were downgraded to C(hyb) from Caa3(hyb). Nova KBM’s standalone E bank financial strength rating (BFSR) has been affirmed. In addition, Moody’s lowered the bank’s baseline credit assessment (BCA) to caa3 from caa1 within E standalone BSFR.


The downgrades were prompted by Moody's assessment that NKBM’s credit profile has been further weakened by (i) the necessity of a further capital injection to maintain capital adequacy above the European Banking Authority’s (EBA) regulatory guidelines; ii) sizeable provisioning needs undermining its already weak capital base; and iii) the expectation of further deterioration in asset quality given the weak economic trends and difficulties in Slovenia’s highly-leveraged corporate sector.