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

How rock music helped bring down the totalitarian regime Video

A new film shows that Rock & Roll, forbidden in the Soviet Union, helped to end the Cold War.

Illustrative Stock Photo

Movies under an open sky feel differently than in an air-conditioned cinema Photo

The popularity of outdoor cinemas is increasing in Bratislava

Bažant Kinematograf on the Magio Pláž beach

Peter Sagan announces split with his wife Katarína

The Slovak cycling star who has a young son said “It will be much better this way”.

Peter Sagan marries Katarína, November 2015.

Top 3 news from Last Week in Slovakia Video

Slovakia to buy 14 American fighter jets.

This archive picture from 2014 shows an older model of the F-16 fighter jets.