Moody's may downgrade three Slovenia banks

Moody's Investors Service said it placed the deposit ratings of three Slovenian banks on review for possible downgrade.

Nova Ljubljanska Banka's A3 long-term deposit rating and baseline credit assessment of Ba1 were placed on review for possible downgrade.

Nova Kreditna Banka Maribor's Baa1 long-term deposit rating and baseline credit assessment of Ba2 were placed on review for possible downgrade.

Abanka Vipa's Baa1 long-term deposit rating and baseline credit assessment of Ba1 were placed on review for possible downgrade.

The agency said the decision to place the ratings on review were prompted by the ongoing weakness of the Slovenian corporate sector, which in turn will likely cause further material deterioration in the banks' asset quality metrics, Moody's said.

This trend of weakening asset quality began in 2008 and has already put significant pressure on banks' profitability and capital resources, the agency said.

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