The international ratings agency, Moody's, in its press release changed the Rating of OTP banka d.d. from A2/P-1/D+ to Baa1/P-2/D. The Long-term Bank Deposit Rating of OTP banka is Baa1, the short term risk is evaluated at P-2 and Financial Strength Rating at D. The outlook is set at negative.
Moody's says that the rating downgrade is driven by continuing pressure on the banks’ financial metrics, given the weak credit environment in Slovenia and in other regional markets in it operates. “The anaemic economic recovery in Slovenia, which has followed the sharp recession in 2009, continues to generate corporate insolvencies and is likely to result in further asset quality deterioration and significant provisioning needs in the second half of 2010.
The following debt was also downgraded:
- The EUR100.0 million 7.02% subordinated loan participation notes were downgraded to Ba2
- The EUR50.0 million subordinated floating-rate Eurobonds were downgraded to Ba2
