Moody's on Feb. 22 extended its review of the Caa1 long-term deposit ratings of Novo Banco SA and its related entities, reflecting the continued lack of visibility on the Portuguese lender's financial liability structure after the completion of its liability management exercise in 2017.

The agency, which initiated the review for further downgrade in April 2017, expects to complete the process in the coming weeks and after Novo Banco reports its results for full-year 2017.

It was not the first time that Moody's extended its review of Novo Banco's Caa1 long-term deposit ratings.

In October 2017, the agency upgraded Novo Banco SA's baseline and adjusted baseline credit assessments to "caa2" from "ca" after the bank had secured the approval of bondholders for a discounted buyback of bonds worth €4.74 billion, but extended the review of the long-term deposit ratings, citing a low probability of government support for the bank, among other factors.