Moody’s changes Aktia Bank view

Moody's Investors Service said it affirmed Aktia Bank plc's long-term foreign and local currency bank deposit ratings of A2 and changed the outlook to negative from stable.

The rating on the local currency senior unsecured medium-term note program rating was also affirmed at (P)A2.

Moody's affirmed the baseline credit assessment and adjusted baseline credit assessment of baa1.

The long-term foreign and local currency counterparty risk ratings were affirmed at A1 and the long-term counterparty risk assessment was affirmed at A1(cr).

The foreign and local currency short-term counterparty risk ratings and bank deposit ratings were affirmed at P-1, the other short-term program rating was affirmed at (P)P-1 and the short-term counterparty risk assessment was affirmed at P-1(cr).

Both the subordinated debt rating of Baa2 and the subordinate medium-term note program rating of (P)Baa2 were affirmed as was the preferred stock non-cumulative rating of Ba1(hyb).

The agency said the negative outlook on the long-term bank deposit ratings reflects uncertainty regarding the bank's strategy and ability to sustainably improve its profitability and capital position highlighted by the recent dismissal of the chief executive officer.

Capital and profitability are currently relatively weak and if sustained will put negative pressure on the ratings, Moody’s said.

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