Moody’s might cut KLP Banken

Moody’s Investors Service said it placed KLP Banken AS' A2/P-1 foreign and local currency long- and short-term deposit ratings on review for downgrade.

The baseline credit assessment of baa1, the adjusted BCA of a3 and the long and short-term counterparty risk assessment of Aa3(cr)/P-1(cr) remain unaffected.

The agency said the review for downgrade was triggered by the upcoming maturity of a NOK 500 million senior unsecured bond on April 4, which, if not replaced, will reduce the cushion of loss absorbing obligations protecting depositors in case of failure.

During the review period, Moody's said it will assess any commitment by the bank to replace the maturing bonds and/or the impact of eventual issuances in accordance with Moody's advanced loss given failure analysis.

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