Spectator on facebook

Spectator on facebook

Moody's changes outlook of all VÚB's ratings to negative

Ratings agency Moody's Investors Service agency has downgraded the outlook for all its ratings applying to Všeobecná Úverová Banka (VÚB), one of Slovakia's main commercial banks, from stable to negative, it was announced on Thursday, January 31. Moody's reconfirmed VÚB's standalone bank financial strength rating (BFSR) at C-, which is equivalent to a 'baa2' standalone credit rating, as well as its long-term deposit rating (A3) and short-term rating (Prime-2).

Ratings agency Moody's Investors Service agency has downgraded the outlook for all its ratings applying to Všeobecná Úverová Banka (VÚB), one of Slovakia's main commercial banks, from stable to negative, it was announced on Thursday, January 31. Moody's reconfirmed VÚB's standalone bank financial strength rating (BFSR) at C-, which is equivalent to a 'baa2' standalone credit rating, as well as its long-term deposit rating (A3) and short-term rating (Prime-2).

The agency explained the negative outlook by reference to a recent drop in VÚB's profitability as well as its high credit concentration, "exposing it to potential asset-quality pressure in the currently uncertain and challenged economic environment in Slovakia", the TASR newswire quoted Moody's as saying. VÚB's extensive engagement in purchasing Slovak government securities was mentioned as another risk factor that was taken into consideration when assessing the outlooks.

VÚB, which is part of the Italian banking group Intesa Sanpaolo SpA, reported a 44-percent drop in its net profits for the first half of 2012 (to €49.7 million). This was mainly caused by the introduction of a bank levy in Slovakia and one-off losses linked to sales of government bonds. In addition, net interest income, which represented 85 percent of the bank's profits in the first half of last year, fell 2 percent year-on-year as a result of growing expenditures on funding the bank's operations and increased competition in the market.

Source: TASR

Compiled by Zuzana Vilikovská from press reports
The Slovak Spectator cannot vouch for the accuracy of the information presented in its Flash News postings.

The processing of personal data is subject to our Privacy Policy and the Cookie Policy. Before submitting your e-mail address, please make sure to acquaint yourself with these documents.

Top stories

Rules for hiring foreigners are simpler. For exceptions

Despite positive changes, employers still point to some barriers preventing more effective and simpler recruitment of foreign workers.

Some problems with Foreigners’ Police continue.

Slovak healthcare needs thousands of medical workers

Slovak doctors, nurses and midwives are not hesitating in finding better work conditions abroad.

Illustrative Stock Photo

For a Decent Slovakia protests to resume on Friday

After a summer break, organisers of the protests that have drawn masses to Slovakia’s streets stated that their – and the citizens’ – demands are far from being met.

For A Decent Slovakia march on June 22, 2018, in Bratislava.

News isn’t negative because journalists are cynical

The problem is caused by the demand side.