Moody's on Sept. 5 assigned Banque Commerciale Du Congo SA long- and short-term deposit ratings of Caa2/Not Prime, with a stable outlook on the long-term rating.
The rating agency also assigned the Congo-based lender "caa2" baseline and adjusted baseline credit assessments, Caa1(cr)/Not Prime(cr) long- and short-term counterparty risk assessments and Caa1/Not Prime long- and short-term counterparty risk ratings.
Moody's said the bank's baseline credit assessment reflects its strong established corporate banking franchise that drive solid profitability, combined with the lender's high level of liquid resources and deposit-based funding. The agency noted, however, that the positive considerations remain limited by the very challenging operating environment in the lender's home country, combined with its high level of problem loans, concentrated loan book and modest capitalization.
Moody's also noted that the bank's long-term deposit rating does not incorporate any government support uplift from its baseline credit assessment, reflecting the agency's assessment of a low probability of state support in case of need.
Moody's said the stable outlook reflects its view that the combination of the bank's high level of liquid resources, deposit-based funding and solid profitability balance challenges from its home country's operating environment and its high level of problem loans, modest capital levels and credit concentrations.
