Moody's: Negative view for Eastern Europe banks

Moody's Investors Service said it will likely maintain a negative outlook for banking systems in 12 countries within the Commonwealth of Independent States, the Baltic States and Eastern Europe.

Moody's said in a new report that it has maintained in the recent past a negative outlook on all the banking systems it covers in these regions, reflecting the adverse impact of the global financial crisis and the economic downturn on the banks' asset quality, earnings, capitalization and funding conditions.

The agency said it would likely maintain negative outlooks for this year for banking systems in Ukraine, Kazakhstan, Hungary, Romania, Bulgaria and the Baltic countries, due to continued negative pressure on financial fundamentals and the still challenging economic environment in many of those countries.

Evidence of stabilization have begun to emerge in a few countries, however, and the agency said the outlook for the banking systems in Poland, Russia, Slovakia and Czech Republic could be changed to stable from negative in the second half of 2010.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.