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Rating Action:

Moody's takes rating actions on seven Omani banks

07 Mar 2019

Rating actions follow downgrade of the Omani government rating to Ba1

Limassol, March 07, 2019 -- Moody's Investors Service ("Moody's") has today downgraded the long-term local and foreign currency deposit ratings of four Omani banks: Bank Muscat SAOG (Bank Muscat), HSBC Bank Oman SAOG (HBON), Bank Dhofar SAOG (Bank Dhofar) and National Bank of Oman SAOG (NBO). At the same time, Moody's affirmed the long-term local currency deposit rating of three banks: Bank Sohar SAOG (Sohar International), Oman Arab Bank (SAOC) (OAB) and Bank Nizwa SAOG (Bank Nizwa). Moody's has also downgraded the long-term foreign currency deposit ratings of Sohar International and OAB. Moody's has affirmed the long-term foreign currency deposit rating of Bank Nizwa. Moody's has maintained a negative outlook on the long-term deposit and senior unsecured ratings, where applicable of the seven banks.

At the same time, Moody's has affirmed the baseline credit assessment (BCA) and adjusted BCA of six Omani banks: HBON, Bank Dhofar, NBO, OAB, Sohar International and Bank Nizwa. In addition, Moody's has downgraded the BCA and adjusted BCA of Bank Muscat.

These actions, which follow Moody's downgrade of the Government of Oman issuer rating to Ba1 with a negative outlook from Baa3 with a negative outlook, reflect the Omani government's weakening capacity to support the local banks as well as the weakening operating environment in the country.

A full list of affected ratings is at the bottom of the press release.

RATINGS RATIONALE

-- DOWNGRADES AND AFFIRMATION OF DEPOSIT RATINGS REFLECT LOWER GOVERNMENT SUPPORT CAPACITY AND WEAKENING OPERATING ENVIRONMENT

Today's rating action reflects, to differing degrees, a combination of (i) the Omani government's weakened fiscal capacity to support the country's banks in case of need, as indicated by the downgrade in the sovereign rating, and (ii) the weakening operating environment, as captured by Moody's lowering of its Macro Profile for Oman to "Weak+" from "Moderate-". The change in the Macro Profile for Oman reflects Moody's view of institutional and policy constraints to fiscal consolidation in an environment of moderate oil prices.

The sovereign action reflects Moody's expectation that, in an environment of moderate oil prices, the Oman government's fiscal metrics will weaken as the scope of fiscal consolidation is more significantly constrained than previously assessed by the government's economic and social stability objectives. Please see "Moody's downgrades Oman's rating to Ba1, outlook negative";http://www.moodys.com/viewresearchdoc.aspx?docid=PR_395864

Details of how these drivers affect the banks ratings are given in the bank specific sections below.

-- NEGATIVE OUTLOOKS REFLECT THE NEGATIVE OULOOK ON THE SOVEREIGN RATING COMBINED WITH STANDALONE PRESSURE AT TWO BANKS

Moody's decision to maintain the negative outlook on the Omani banks' long-term deposit ratings reflects (i) the potential further weakening in the Omani government's credit strength and support capacity, as reflected by the negative outlook on the government's issuer rating, and (ii) the potential that Moody's could reassess its assumptions regarding the government's willingness to support some of the country's banks.

In addition, for two banks, the negative outlook also reflects potential pressures on their standalone credit strength, arising from the banks' asset quality profiles.

-- BANK-BY-BANK SUMMARY OF ACTIONS

- Bank Muscat SAOG (Bank Muscat)

Moody's downgraded Bank Muscat's long-term local currency deposit rating to Ba1 from Baa3, and downgraded its BCA and adjusted BCA to ba1 from baa3. Bank Muscat's long-term local currency deposit rating continues to be aligned with the rating of the Oman sovereign. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba2 from Baa3 due to the new sovereign ceiling. At the same time, the rating agency has maintained the outlook on the bank's long-term deposit ratings at negative.

The downgrade of Bank Muscat's long-term local currency deposit ratings reflects (i) the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating, and (ii) the sensitivity of the bank's standalone profile (BCA) to Moody's lowering of its Macro Profile for Oman to "Weak+" from "Moderate-". The absence of government support uplift for the bank's deposit rating, despite Moody's assessment of a 'very high' likelihood of government support in case of need, reflects the positioning of the bank's BCA at the same level as the sovereign rating.

The downgrade of the BCA to ba1 from baa3 reflects the sensitivity of the bank's standalone credit profile to a weaker operating environment, which is captured by the lowering of Oman's Macro Profile to "Weak+" from "Moderate-". Bank Muscat's ba1 BCA reflects its solid asset quality, high capital (17.4% tangible common equity/risk-weighted assets at end-2018) as well as its healthy profitability (1.4% net income/ tangible assets during 2018) underpinned by a dominant domestic franchise (over 35% domestic asset market share). The bank's BCA also captures Bank Muscat's stable funding driven by its established deposit gathering franchise (34% deposit market share), along with sound liquidity.

The negative outlook on the bank's long-term deposit ratings reflects the potential reduction in the Omani government's creditworthiness and support capacity, reflected in the negative outlook on the sovereign rating.

- HSBC Bank Oman SAOG (HBON)

Moody's downgraded HBON's long-term local currency deposit rating to Ba1 from Baa3, and affirmed its adjusted BCA at baa2 and its BCA at ba1. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba2 from Baa3 due to the new sovereign ceiling. At the same time, the rating agency has maintained the outlook on the bank's long-term deposit ratings at negative.

The downgrade of HBON's long-term local currency deposit rating reflects the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating. The absence of government support uplift for the bank's deposit rating, despite Moody's assessment of a 'high' likelihood of government support in case of need, reflects the positioning of the bank's adjusted BCA above the sovereign rating.

The affirmation of the adjusted BCA at baa2 reflects the unchanged BCA at ba1 combined with the unchanged two notches of affiliate support from HSBC Holdings plc (FC senior unsecured A2 stable, BCA a2), HBON's ultimate parent. The two-notch affiliate support uplift reflects HSBC Holdings plc's management control of HBON, combined with the strategic fit and brand name association of HBON with HSBC Holdings plc.

The affirmation of the BCA at ba1 reflects the resilience of the HBON's standalone credit profile to a weaker operating environment, which is captured by the lowering of the Macro Profile to "Weak+" from "Moderate-". The bank's ba1 BCA reflects HBON's solid capitalisation (17.3% tangible common equity/ risk weighted assets at end-2018), sound profitability (1.3% net income/tangible banking assets in 2018), low market funding reliance (2.7% market funds/tangible banking assets) and high liquidity (38.2% liquid banking assets/tangible banking assets). Moody's however expects the bank's asset quality to weaken modestly (1.7% problem loans/gross loans at end-2018), owing to continued public spending restraint amid low oil prices.

The negative outlook on HBON's long-term deposit ratings reflects the potential reduction in Oman's government support capacity (reflected in the negative outlook on the sovereign rating) and/or support willingness.

- Bank Dhofar SAOG (Bank Dhofar)

Moody's downgraded Bank Dhofar's long-term local currency deposit rating to Ba1 from Baa3, and affirmed its BCA and adjusted BCA at ba2. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba2 from Baa3 due to the new sovereign ceiling. At the same time, the rating agency has maintained the outlook on the bank's long-term deposit ratings at negative.

The downgrade of Bank Dhofar's long-term deposit ratings reflects the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating.

The affirmation of the BCA at ba2 reflects the resilience of the bank's standalone credit profile to a weaker operating environment, which is captured by the lowering of the Macro Profile to "Weak+ " from "Moderate-". The bank's ba2 BCA reflects its improved capitalisation (12.4% tangible common equity/risk-weighted assets at end-2018), sound profitability, modest market funding reliance (10.5% market funds/ tangible banking assets at end-2018) and sound liquidity, reflecting access to large government-related deposits. However, Moody's however expects the bank's asset quality to weaken gradually, reflecting its sizeable construction sector exposure (15% of gross loans) and historically rapid growth.

The negative outlook on Bank Dhofar's long-term deposit ratings reflects the potential reduction in Oman government support capacity (reflected in the negative outlook on the sovereign rating) and/or support willingness. In addition, the negative outlook on Bank Dhofar's ratings continues to reflect potential pressures from its sizeable construction sector exposure and historically rapid growth.

- National Bank of Oman SAOG (NBO)

Moody's downgraded NBO's long-term local currency deposit rating to Ba1 from Baa3, and affirmed its BCA and adjusted BCA at ba2. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba2 from Baa3 due to the new sovereign ceiling. At the same time, the rating agency has maintained the outlook on the bank's long-term deposit ratings at negative.

The downgrade of NBO's long-term deposit ratings reflects the Omani government's weakened fiscal capacity to support the bank in case of need, as indicated by the downgrade in the sovereign rating.

The affirmation of the BCA at ba2 reflects the resilience of the bank's standalone credit profile to a weaker operating environment, which is captured by the lowering of the Macro Profile to "Weak+" from "Moderate-". The bank's ba2 BCA reflects its sound capitalisation (12.3% tangible common equity/risk-weighted assets at end-2018) and healthy profitability. However, Moody's expects the bank's asset quality to continue to weaken (4.2% problem loans/gross loans at end-2018), while the bank continues to maintain modest liquid resources and a concentrated funding base.

The negative outlook on NBO's long-term deposit ratings reflects the potential reduction in Oman government support capacity (reflected in the negative outlook on the sovereign rating) and/or support willingness. In addition, the negative outlook on NBO's ratings now also reflects potential pressures on its standalone credit strength, arising from the bank's international operations in the United Arab Emirates.

- Bank Sohar SAOG (Sohar International)

Moody's affirmed Sohar International's long-term local currency deposit ratings at Ba1, and affirmed its BCA and adjusted BCA at ba3. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba2 from Ba1 due to the new sovereign ceiling. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The affirmation of Sohar International's long-term local currency deposit ratings reflects the fact that despite a lower government capacity to support the bank, Moody's higher assessment of a very high likelihood of support for Sohar International now leads to two notches of government support uplift for the bank. Moody's increase of its assessment of probability of government support for the bank to 'very high' from 'high' reflects the increase in direct and indirect government and government related ownership at the bank, to more than 60%. The higher assessment of the probability of government support for Sohar International also reflects the relative systemic importance of the bank, with a 8% deposit market share.

The affirmation of the BCA at ba3 reflects the resilience of the bank's BCA to a weaker operating environment. Moody's expects the bank's asset quality to continue to weaken (2.9% problem loans/gross loans at end-2018), reflecting tis sizeable construction exposure (18% of gross loans) and rapid growth. The bank exhibits modest solvency buffers, with profitability at 0.7% net income/tangible banking assets in 2018 and tangible common equity at 9.7% of risk weighted assets at end-2018. However, Moody's expects the modest capitalisation to increase by around 150 basis points following completion of a rights issue later this year. The bank's ba3 BCA also reflects a high reliance on market funding (24.8% market funds/ tangible banking assets at end-2018) and modest liquid resources (19.2% liquid assets/ tangible banking assets at end-2018).

The negative outlook on Sohar International's long-term deposit ratings reflects the potential reduction in Oman government support capacity (reflected in the negative outlook on the sovereign rating) and/or support willingness.

- Oman Arab Bank (SAOC) (OAB)

Moody's affirmed OAB's long-term local currency deposit ratings at Ba1, and affirmed its BCA and adjusted BCA at ba2. Moody's downgraded the bank's long-term foreign currency deposit rating to Ba2 from Ba1 due to the new sovereign ceiling. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The affirmation of OAB's long-term local currency deposit ratings reflects the fact that even with a lower government capacity to support the bank, Moody's continued assessment of a high likelihood of support for OAB still leads to one notch of government support uplift for the bank.

The affirmation of the BCA at ba2 reflects the resilience of the bank's BCA to a weaker operating environment. The bank's ba2 BCA reflects its sound asset quality (2.6% problem loans to gross loans at September 2018), which benefits from its conservative approach and association with Jordan-based Arab Bank PLC (LT FC bank deposits B2 Stable, BCA ba2), its sound capitalisation (12.4% tangible common equity/risk-weighted assets at end-September 2018) and its low market funding (3.4% market funds/ tangible banking assets at end-September 2018). However, Moody's expects OAB to maintain modest profit generation and modest liquidity.

The negative outlook on OAB's long-term deposit ratings reflects the potential reduction in Oman government support capacity (reflected in the negative outlook on the sovereign rating) and/or support willingness.

- Bank Nizwa SAOG (Bank Nizwa)

Moody's affirmed Bank Nizwa's long-term local and foreign currency deposit ratings at Ba2, and affirmed its BCA and adjusted BCA at b1. At the same time, the rating agency has maintained the negative outlook on the bank's long-term deposit ratings.

The affirmation of Bank Nizwa's long-term deposit ratings reflects the fact that even with a lower government capacity to support the bank, Moody's continued assessment of a very high likelihood of support for Bank Nizwa still leads to two notches of government support uplift for the bank.

The affirmation of the BCA at b1 reflects the resilience of Bank Nizwa's BCA to a weaker operating environment. Bank Nizwa's b1 BCA reflects the bank's sound capitalisation (14.2% tangible common equity/risk-weighted assets at end-2018), combined with an improving modest profitability (0.7% net income/ tangible banking assets during the first nine months of 2018) reflecting the bank's developing franchise. These strengths are moderated by rapid growth (27% as of September 2018 year-on-year), concentrated funding profile, limited liquid resources (14.9% liquid assets/ tangible banking assets at end-September 2018) and an evolving risk management framework.

The negative outlook on Bank Nizwa's long-term deposit ratings reflects the potential reduction in Oman government support capacity (reflected in the negative outlook on the sovereign rating) and/or support willingness.

WHAT COULD CHANGE THE RATINGS -- UP

Upwards pressure on the banks' ratings is limited given the negative outlook on their ratings. A stabilisation in the Omani government's issuer rating outlook could lead to a stabilisation in the banks' rating outlooks.

In addition, for Bank Dhofar, a stabilisation in capitalisation buffers combined with resilience of asset quality metrics could lead to a stabilisation of the ratings. For NBO, a stabilisation in asset quality could lead to a stabilisation of the ratings.

WHAT COULD CHANGE THE RATINGS -- DOWN

Downward pressure on Omani banks' ratings could develop through: (1) a further weakening of the Omani government's capacity to provide support, as a downgrade of Omani government's issuer rating would imply, and/or (2) Moody's reassessment of the willingness of the government to provide support, which could result from a downgrade of the Omani government's issuer rating.

RATING OUTLOOKS

The negative outlook on the Omani banks' long-term deposit ratings reflects (i) the potential further weakening in the Omani government's credit strength and support capacity, as reflected by the negative outlook on the government's issuer rating, and (ii) the potential that Moody's could reassess its assumptions regarding the government's willingness to support some of the country's banks.

In addition, for Bank Dhofar and NBO, the negative outlook also reflects potential pressures on their standalone credit strength, arising from the banks' asset quality profiles.

PRINCIPAL METHODOLOGY

The principal methodology used in these ratings was Banks published in August 2018. Please see the Rating Methodologies page on www.moodys.com for a copy of this methodology.

The local market analyst for these ratings is Mik Kabeya, tel.: +971 (423) 795-90.

LIST OF AFFECTED RATINGS

Issuer: Bank Dhofar SAOG

..Affirmations:

.... Adjusted Baseline Credit Assessment, Affirmed ba2

.... Baseline Credit Assessment, Affirmed ba2

..Downgrades:

.... Long-term Counterparty Risk Assessment, Downgraded to Ba1(cr) from Baa3(cr)

.... Short-term Counterparty Risk Assessment, Downgraded to NP(cr) from P-3(cr)

.... Long-term Counterparty Risk Rating, Downgraded to Ba1 from Baa3

.... Short-term Counterparty Risk Rating, Downgraded to NP from P-3

....Senior Unsecured Medium-Term Note Program, Downgraded to (P)Ba1 from (P)Baa3

.... Long-term Bank Deposits (Local Currency), Downgraded to Ba1 from Baa3, Outlook Remains Negative

.... Long-term Bank Deposits (Foreign Currency), Downgraded to Ba2 from Baa3, Outlook Remains Negative

.... Short-term Bank Deposits, Downgraded to NP from P-3

..Outlook Action:

....Outlook Remains Negative

Issuer: Bank Muscat SAOG

..Downgrades:

.... Adjusted Baseline Credit Assessment, Downgraded to ba1 from baa3

.... Baseline Credit Assessment, Downgraded to ba1 from baa3

.... Long-term Counterparty Risk Assessment, Downgraded to Baa3(cr) from Baa2(cr)

.... Short-term Counterparty Risk Assessment, Downgraded to P-3(cr) from P-2(cr)

.... Long-term Counterparty Risk Rating, Downgraded to Baa3 from Baa2

.... Short-term Counterparty Risk Rating, Downgraded to P-3 from P-2

.... Senior Unsecured Medium-Term Note Program, Downgraded to (P)Ba1 from (P)Baa3

.... Subordinate Medium-Term Note Program, Downgraded to (P)Ba2 from (P)Ba1

....Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1 from Baa3, Outlook Remains Negative

.... Long-term Bank Deposits (Local Currency), Downgraded to Ba1 from Baa3, Outlook Remains Negative

.... Long-term Bank Deposits (Foreign Currency), Downgraded to Ba2 from Baa3, Outlook Remains Negative

.... Short-term Bank Deposits, Downgraded to NP from P-3

..Outlook Action:

....Outlook Remains Negative

Issuer: Bank Nizwa SAOG

..Affirmations:

.... Adjusted Baseline Credit Assessment, Affirmed b1

.... Baseline Credit Assessment, Affirmed b1

.... Long-term Counterparty Risk Assessment, Affirmed Ba1(cr)

.... Short-term Counterparty Risk Assessment, Affirmed NP(cr)

.... Long-term Counterparty Risk Rating, Affirmed Ba1

.... Short-term Counterparty Risk Rating, Affirmed NP

....Long-term Bank Deposits, Affirmed Ba2, Outlook Remains Negative

.... Short-term Bank Deposits, Affirmed NP

..Outlook Action:

....Outlook Remains Negative

Issuer: Bank Sohar SAOG

..Affirmations:

.... Adjusted Baseline Credit Assessment, Affirmed ba3

.... Baseline Credit Assessment, Affirmed ba3

.... Long-term Counterparty Risk Assessment, Affirmed Ba1(cr)

.... Short-term Counterparty Risk Assessment, Affirmed NP(cr)

.... Long-term Counterparty Risk Rating, Affirmed Ba1

.... Short-term Counterparty Risk Rating, Affirmed NP

.... Long-term Bank Deposits (Local Currency), Affirmed Ba1, Outlook Remains Negative

.... Short-term Bank Deposits, Affirmed NP

..Downgrades:

.... Long-term Bank Deposits (Foreign Currency), Downgraded to Ba2 from Ba1, Outlook Remains Negative

..Outlook Action:

....Outlook Remains Negative

Issuer: HSBC Bank Oman SAOG

..Affirmations:

.... Adjusted Baseline Credit Assessment, Affirmed baa2

.... Baseline Credit Assessment, Affirmed ba1

..Downgrades:

.... Long-term Counterparty Risk Assessment, Downgraded to Baa3(cr) from Baa2(cr)

.... Short-term Counterparty Risk Assessment, Downgraded to P-3(cr) from P-2(cr)

.... Long-term Counterparty Risk Rating, Downgraded to Baa3 from Baa2

.... Short-term Counterparty Risk Rating, Downgraded to P-3 from P-2

.... Long-term Bank Deposits (Local Currency), Downgraded to Ba1 from Baa3, Outlook Remains Negative

.... Long-term Bank Deposits (Foreign Currency), Downgraded to Ba2 from Baa3, Outlook Remains Negative

.... Short-term Bank Deposits, Downgraded to NP from P-3

..Outlook Action:

....Outlook Remains Negative

Issuer: National Bank of Oman SAOG

..Affirmations:

.... Adjusted Baseline Credit Assessment, Affirmed ba2

.... Baseline Credit Assessment, Affirmed ba2

..Downgrades:

.... Long-term Counterparty Risk Assessment, Downgraded to Ba1(cr) from Baa3(cr)

.... Short-term Counterparty Risk Assessment, Downgraded to NP(cr) from P-3(cr)

.... Long-term Counterparty Risk Rating, Downgraded to Ba1 from Baa3

.... Short-term Counterparty Risk Rating, Downgraded to NP from P-3

....Senior Unsecured Medium-Term Note Program, Downgraded to (P)Ba1 from (P)Baa3

....Senior Unsecured Regular Bond/Debenture, Downgraded to Ba1 from Baa3, Outlook Remains Negative

....Long-term Bank Deposits (Local Currency), Downgraded to Ba1 from Baa3, Outlook Remains Negative

....Long-term Bank Deposits (Foreign Currency), Downgraded to Ba2 from Baa3, Outlook Remains Negative

.... Short-term Bank Deposits, Downgraded to NP from P-3

..Outlook Action:

....Outlook Remains Negative

Issuer: Oman Arab Bank (SAOC)

..Affirmations:

.... Adjusted Baseline Credit Assessment, Affirmed ba2

.... Baseline Credit Assessment, Affirmed ba2

....Long-term Bank Deposits (Local Currency), Affirmed Ba1, Outlook Remains Negative

.... Short-term Bank Deposits, Affirmed NP

..Downgrades:

.... Long-term Counterparty Risk Assessment, Downgraded to Ba1(cr) from Baa3(cr)

.... Short-term Counterparty Risk Assessment, Downgraded to NP(cr) from P-3(cr)

.... Long-term Counterparty Risk Rating, Downgraded to Ba1 from Baa3

.... Short-term Counterparty Risk Rating, Downgraded to NP from P-3

....Long-term Bank Deposits (Foreign Currency), Downgraded to Ba2 from Ba1, Outlook Remains Negative

..Outlook Action:

....Outlook Remains Negative

REGULATORY DISCLOSURES

For ratings issued on a program, series or category/class of debt, this announcement provides certain regulatory disclosures in relation to each rating of a subsequently issued bond or note of the same series or category/class of debt or pursuant to a program for which the ratings are derived exclusively from existing ratings in accordance with Moody's rating practices. For ratings issued on a support provider, this announcement provides certain regulatory disclosures in relation to the credit rating action on the support provider and in relation to each particular credit rating action for securities that derive their credit ratings from the support provider's credit rating. For provisional ratings, this announcement provides certain regulatory disclosures in relation to the provisional rating assigned, and in relation to a definitive rating that may be assigned subsequent to the final issuance of the debt, in each case where the transaction structure and terms have not changed prior to the assignment of the definitive rating in a manner that would have affected the rating. For further information please see the ratings tab on the issuer/entity page for the respective issuer on www.moodys.com.

For any affected securities or rated entities receiving direct credit support from the primary entity(ies) of this credit rating action, and whose ratings may change as a result of this credit rating action, the associated regulatory disclosures will be those of the guarantor entity. Exceptions to this approach exist for the following disclosures, if applicable to jurisdiction: Ancillary Services, Disclosure to rated entity, Disclosure from rated entity.

Regulatory disclosures contained in this press release apply to the credit rating and, if applicable, the related rating outlook or rating review.

Please see www.moodys.com for any updates on changes to the lead rating analyst and to the Moody's legal entity that has issued the rating.

Please see the ratings tab on the issuer/entity page on www.moodys.com for additional regulatory disclosures for each credit rating.

Nondas Nicolaides
VP - Senior Credit Officer
Financial Institutions Group
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Sean Marion
MD - Financial Institutions
Financial Institutions Group
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

Releasing Office:
Moody's Investors Service Cyprus Ltd.
Porto Bello Building
1, Siafi Street, 3042 Limassol
PO Box 53205
Limassol CY 3301
Cyprus
JOURNALISTS: 44 20 7772 5456
Client Service: 44 20 7772 5454

No Related Data.
© 2019 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

CREDIT RATINGS ISSUED BY MOODY'S INVESTORS SERVICE, INC. AND ITS RATINGS AFFILIATES (“MIS”) ARE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES, AND MOODY’S PUBLICATIONS MAY INCLUDE MOODY’S CURRENT OPINIONS OF THE RELATIVE FUTURE CREDIT RISK OF ENTITIES, CREDIT COMMITMENTS, OR DEBT OR DEBT-LIKE SECURITIES. MOODY’S DEFINES CREDIT RISK AS THE RISK THAT AN ENTITY MAY NOT MEET ITS CONTRACTUAL FINANCIAL OBLIGATIONS AS THEY COME DUE AND ANY ESTIMATED FINANCIAL LOSS IN THE EVENT OF DEFAULT OR IMPAIRMENT. SEE MOODY’S RATING SYMBOLS AND DEFINITIONS PUBLICATION FOR INFORMATION ON THE TYPES OF CONTRACTUAL FINANCIAL OBLIGATIONS ADDRESSED BY MOODY’S RATINGS. CREDIT RATINGS DO NOT ADDRESS ANY OTHER RISK, INCLUDING BUT NOT LIMITED TO: LIQUIDITY RISK, MARKET VALUE RISK, OR PRICE VOLATILITY. CREDIT RATINGS AND MOODY’S OPINIONS INCLUDED IN MOODY’S PUBLICATIONS ARE NOT STATEMENTS OF CURRENT OR HISTORICAL FACT. MOODY’S PUBLICATIONS MAY ALSO INCLUDE QUANTITATIVE MODEL-BASED ESTIMATES OF CREDIT RISK AND RELATED OPINIONS OR COMMENTARY PUBLISHED BY MOODY’S ANALYTICS, INC. CREDIT RATINGS AND MOODY’S PUBLICATIONS DO NOT CONSTITUTE OR PROVIDE INVESTMENT OR FINANCIAL ADVICE, AND CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT AND DO NOT PROVIDE RECOMMENDATIONS TO PURCHASE, SELL, OR HOLD PARTICULAR SECURITIES. NEITHER CREDIT RATINGS NOR MOODY’S PUBLICATIONS COMMENT ON THE SUITABILITY OF AN INVESTMENT FOR ANY PARTICULAR INVESTOR. MOODY’S ISSUES ITS CREDIT RATINGS AND PUBLISHES MOODY’S PUBLICATIONS WITH THE EXPECTATION AND UNDERSTANDING THAT EACH INVESTOR WILL, WITH DUE CARE, MAKE ITS OWN STUDY AND EVALUATION OF EACH SECURITY THAT IS UNDER CONSIDERATION FOR PURCHASE, HOLDING, OR SALE.

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CREDIT RATINGS AND MOODY’S PUBLICATIONS ARE NOT INTENDED FOR USE BY ANY PERSON AS A BENCHMARK AS THAT TERM IS DEFINED FOR REGULATORY PURPOSES AND MUST NOT BE USED IN ANY WAY THAT COULD RESULT IN THEM BEING CONSIDERED A BENCHMARK.

All information contained herein is obtained by MOODY’S from sources believed by it to be accurate and reliable. Because of the possibility of human or mechanical error as well as other factors, however, all information contained herein is provided “AS IS” without warranty of any kind. MOODY'S adopts all necessary measures so that the information it uses in assigning a credit rating is of sufficient quality and from sources MOODY'S considers to be reliable including, when appropriate, independent third-party sources. However, MOODY’S is not an auditor and cannot in every instance independently verify or validate information received in the rating process or in preparing the Moody’s publications.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability to any person or entity for any indirect, special, consequential, or incidental losses or damages whatsoever arising from or in connection with the information contained herein or the use of or inability to use any such information, even if MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers is advised in advance of the possibility of such losses or damages, including but not limited to: (a) any loss of present or prospective profits or (b) any loss or damage arising where the relevant financial instrument is not the subject of a particular credit rating assigned by MOODY’S.

To the extent permitted by law, MOODY’S and its directors, officers, employees, agents, representatives, licensors and suppliers disclaim liability for any direct or compensatory losses or damages caused to any person or entity, including but not limited to by any negligence (but excluding fraud, willful misconduct or any other type of liability that, for the avoidance of doubt, by law cannot be excluded) on the part of, or any contingency within or beyond the control of, MOODY’S or any of its directors, officers, employees, agents, representatives, licensors or suppliers, arising from or in connection with the information contained herein or the use of or inability to use any such information.

NO WARRANTY, EXPRESS OR IMPLIED, AS TO THE ACCURACY, TIMELINESS, COMPLETENESS, MERCHANTABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE OF ANY CREDIT RATING OR OTHER OPINION OR INFORMATION IS GIVEN OR MADE BY MOODY’S IN ANY FORM OR MANNER WHATSOEVER.

Moody’s Investors Service, Inc., a wholly-owned credit rating agency subsidiary of Moody’s Corporation (“MCO”), hereby discloses that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by Moody’s Investors Service, Inc. have, prior to assignment of any rating, agreed to pay to Moody’s Investors Service, Inc. for ratings opinions and services rendered by it fees ranging from $1,000 to approximately $2,700,000. MCO and MIS also maintain policies and procedures to address the independence of MIS’s ratings and rating processes. Information regarding certain affiliations that may exist between directors of MCO and rated entities, and between entities who hold ratings from MIS and have also publicly reported to the SEC an ownership interest in MCO of more than 5%, is posted annually at www.moodys.com under the heading “Investor Relations — Corporate Governance — Director and Shareholder Affiliation Policy.”

Additional terms for Australia only: Any publication into Australia of this document is pursuant to the Australian Financial Services License of MOODY’S affiliate, Moody’s Investors Service Pty Limited ABN 61 003 399 657AFSL 336969 and/or Moody’s Analytics Australia Pty Ltd ABN 94 105 136 972 AFSL 383569 (as applicable). This document is intended to be provided only to “wholesale clients” within the meaning of section 761G of the Corporations Act 2001. By continuing to access this document from within Australia, you represent to MOODY’S that you are, or are accessing the document as a representative of, a “wholesale client” and that neither you nor the entity you represent will directly or indirectly disseminate this document or its contents to “retail clients” within the meaning of section 761G of the Corporations Act 2001. MOODY’S credit rating is an opinion as to the creditworthiness of a debt obligation of the issuer, not on the equity securities of the issuer or any form of security that is available to retail investors.

Additional terms for Japan only: Moody's Japan K.K. (“MJKK”) is a wholly-owned credit rating agency subsidiary of Moody's Group Japan G.K., which is wholly-owned by Moody’s Overseas Holdings Inc., a wholly-owned subsidiary of MCO. Moody’s SF Japan K.K. (“MSFJ”) is a wholly-owned credit rating agency subsidiary of MJKK. MSFJ is not a Nationally Recognized Statistical Rating Organization (“NRSRO”). Therefore, credit ratings assigned by MSFJ are Non-NRSRO Credit Ratings. Non-NRSRO Credit Ratings are assigned by an entity that is not a NRSRO and, consequently, the rated obligation will not qualify for certain types of treatment under U.S. laws. MJKK and MSFJ are credit rating agencies registered with the Japan Financial Services Agency and their registration numbers are FSA Commissioner (Ratings) No. 2 and 3 respectively.

MJKK or MSFJ (as applicable) hereby disclose that most issuers of debt securities (including corporate and municipal bonds, debentures, notes and commercial paper) and preferred stock rated by MJKK or MSFJ (as applicable) have, prior to assignment of any rating, agreed to pay to MJKK or MSFJ (as applicable) for ratings opinions and services rendered by it fees ranging from JPY125,000 to approximately JPY250,000,000.

MJKK and MSFJ also maintain policies and procedures to address Japanese regulatory requirements.

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