Moody's on Jan. 31 assigned MONETA Money Bank a.s. long- and short-term foreign- and local-currency deposit ratings of Baa2/Prime-2, baseline credit assessment and adjusted baseline credit assessment of "baa2" and counterparty risk assessments of A3(cr)/Prime-2(cr).
The deposit ratings are supported by the bank's adjusted baseline credit assessment and its stand-alone BCA, which in turn reflects the benign operating environment in the Czech Republic as well as the lender's overall solid financial fundamentals. The BCA is constrained by Moody's assessment of the propensity for higher volatility of asset risk, due to the nature of the bank's core business in higher-risk consumer finance.
The adjusted BCA incorporates no shareholder support from GE Capital Global Holdings LLC. Meanwhile, the likelihood of public support from the Czech Republic, if needed, is low, Moody's noted.
The outlook on the long-term deposit ratings is stable, reflecting the agency's expectation that the bank will maintain its stand-alone credit profile and liability structure over the medium term.