Moody's: Nomos Bank outlook negative

Moody's Investors Service said it changed the outlook on Nomos Bank to negative from stable and affirmed its senior unsecured debt rating of Ba3 and subordinated debt rating of B1.

"The outlook change reflects Moody's concerns that the worsening economic conditions are likely to translate into a deterioration of Nomos' financial fundamentals. In particular, potential asset quality deterioration is likely to deplete the bank's capital cushion and put pressure on its liquidity which is substantially dependant on wholesale funding," Vladlen Kuznetsov, a Moody's assistant vice president, said in a statement.

Moody's noted that the asset quality is particularly vulnerable to exposure to distressed sectors, such as real estate and construction in which the bank has material exposures.

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