Moody's downgrades Getin Noble Bank

Moody's Investors Service said it downgraded Getin Noble Bank SA's long-term local- and foreign-currency deposit ratings to B1 from Ba3, long-term local- and foreign-currency counterparty risk rating to Ba3 from Ba2, long-term counterparty risk assessment to Ba3(cr) from Ba2(cr) and its baseline credit assessment and adjusted baseline credit assessment to B3 from B2.

The bank's long-term ratings also were placed on review for further downgrade.

The outlook also was revised to under review from negative.

The downgrades are prompted by the bank's half-year 2018 financial results, Moody's explained.

The bank reported additional impairments and a large loss, which further weakened its already low capital adequacy and is a set-back in the bank's efforts to close the gap to its minimum capital requirements, the agency said.

This is despite a capital injection received last year, Moody's added.

The agency said it has rising concerns that it will take longer for the bank to reduce its capital shortfalls compared to Moody's previous expectations.

The agency said it expects to close the review following the bank's third quarter 2018 financial results.

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