Crisis: Moody's downgrades three major Slovenian banks

3-4 point cuts, ''worst capitalization in area'' cited

26 July, 18:58

(ANSAMed) - LJUBLJANA, JULY 26 - Moody's on Thursday downgraded Slovenia's three major banks and put them on a negative outlook, citing ongoing and severe asset-quality deterioration, local media reported based on a Moody's communique issued late last night.

Nova Ljubljanska Banka (NLB) was downgraded to B2 from Ba2, Nova Kreditna Banka Maribor (NKBM) to B3 from Ba2, and Abanka Vipa was downgraded from Ba3 to Caa1. The outlook is negative on all three, according to Moody's, which had already downgraded the same lenders at the beginning of April. The credit rating agency cited ''lasting and consistent deterioration of assets'' and ''rapidly growing'' portfolios of bad loans as its motivation for downgrading.

The state now owns 64% of NLB, up from 59% after a capital hike this month. It holds a majority stake in NKBM and a significant share of Abanka. (ANSAMed).

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