Moody's on Dec. 12 affirmed Rawbank SA's long-term local-currency deposit rating at B3 and foreign-currency deposit rating at Caa1, and changed the outlook on the ratings to negative from stable.
The outlook revision is driven by a recent similar action on the ratings of the Democratic Republic of the Congo. The agency believes that a potential weakening of the government's creditworthiness will affect the stand-alone credit profile of the bank, given the high credit linkages between the bank's balance sheet and sovereign credit risk.
The agency also downgraded the bank's long-term counterparty risk assessment to B3(cr) from B2(cr) and affirmed its short-term deposit ratings at NP, baseline and adjusted baseline credit assessments at "b3" and short-term counterparty risk assessment at NP(cr).
