Moody’s lifts three Slovenian banks

Moody's Investors Service said it upgraded the ratings of three Slovenian banks, including:

• Nova Ljubljanska banka dd's long-term local and foreign-currency deposit ratings were to Ba1 from Ba3, long-term and short-term counterparty risk assessment to Baa3(cr)/Prime-3(cr) from Ba2(cr)/Not Prime(cr), baseline credit assessment (BCA) and adjusted BCA to b1 from b3; stable outlook;

• Nova Kreditna banka Maribor dd's long-term local and foreign-currency deposit ratings to Ba2 from B2, long-term and short-term counterparty risk assessment to Baa3(cr)/Prime-3(cr) from Ba3(cr)/Not Prime(cr), BCA and adjusted BCA to ba3 from b3; stable outlook; and

• Abanka dd's long-term local and foreign-currency deposit ratings to Ba1 from Ba3, the long-term and short-term counterparty risk assessment to Baa3(cr)/Prime-3(cr) from Ba2(cr)/Not Prime(cr), BCA and adjusted BCA to ba3 from b2; stable outlook.

This concludes the review for upgrade initiated on May 3.

The review was prompted by the rating agency's change of its macro profile for Slovenia to "moderate" from "moderate-", as well as the continued improvement in the banks' credit fundamentals.

“The strengthening of the macro profile reflects Moody's assessment that the Slovenian banks' operating environment has benefited from a significant reduction in systemic risks underscored by the start of the privatization process of the largest banks in 2016 as well as gradual improvements in the banks' risk management practices in the past few years. Moody's expects continued recovery in credit demand to support banks' lending growth and revenues, after several years of loan book contraction,” Moody’s said in a news release.

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