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Moody's places KLP Banken's deposit ratings on review for downgrade

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Moody's places KLP Banken's deposit ratings on review for downgrade

Moody's on March 12 placed KLP Banken AS's long- and short-term foreign- and local-currency deposit ratings of A2/P-1 on review for downgrade.

The review placement was driven by the upcoming maturity April 4 of a 500 million Norwegian kroner senior unsecured bond. If the bond is not replaced, the cushion of loss-absorbing obligations that protect KLP Banken's depositors in case of failure will be reduced, Moody's said.

The review will assess any commitment by KLP Banken to replace the maturing bond and/or the impact of eventual losses, in line with the agency's advanced loss given failure analysis. Moody's expects to conclude the review when the bond matures.

KLP Banken's baseline credit assessment of "baa1," adjusted baseline credit assessment of "a3" and long- and short-term counterparty risk assessment of Aa3(cr)/P-1(cr) remain unaffected.

As of March 12, US$1 was equivalent to 7.76 Norwegian kroner.