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Moody's downgrades Invest Bank, changes outlook to negative

Moody's on Sept. 10 downgraded the long-term bank deposit ratings of Invest Bank PSC to Ba3 from Ba1 and changed the outlook to negative from rating under review, concluding a review initiated May 1.

The downgrade on the long-term rating follows a similar action on the bank's baseline and adjusted baseline credit assessments, to "b2" from "ba3". The agency also downgraded the United Arab Emirates-based bank's long- and short-term counterparty risk ratings to Ba2/Not Prime from Baa3/Prime-3 and its long- and short-term counterparty risk assessments to Ba2(cr)/NP(cr) from Baa3(cr)/P-3(cr), while its short-term bank deposit ratings were affirmed at NP.

Moody's said the downgrades reflect the continued weakening in the bank's asset quality, profitability and capitalization in the first half of 2018 due to its continued implementation of a more conservative classification approach and continued high delinquencies amid soft market conditions.

The agency noted that the negative outlook reflects the risk of further deterioration in Invest Bank's asset quality, profitability and capitalization.