Moody's on June 6 changed the outlook on Romania-based Raiffeisen Bank SA's long-term local-currency bank deposits to positive from stable, while affirming the rating at Baa2, following the June 4 upgrade of Austria-based parent Raiffeisen Bank International AG.
The short-term local-currency bank deposits were affirmed at P-2.
The agency also affirmed the bank's long- and short-term foreign-currency bank deposits were affirmed at Baa3/P-3, with a stable outlook on the long-term rating. The bank's baseline and adjusted baseline credit assessments were affirmed at "ba2"/"ba1." Also affirmed were the bank's long- and short-term counterparty risk assessments of Baa2(cr)/P-2(cr).
The positive outlook reflects Moody's view that the bank's credit profile will further improve during the next 12 to 18 months. The bank is likely to continue to cut its bad loans and will fund credit growth using liquid assets and maintain adequate capital levels due to good earnings, Moody's said.
The stable outlook on the long-term foreign-currency bank deposits is in line with that of the sovereign's rating.
