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Moody's lowers Getin Noble Bank's ratings, on review for further downgrade

Moody's downgraded the long-term bank deposit rating of Poland's Getin Noble Bank SA to B1 from Ba3 and placed it on review for further downgrade.

The outlook on the rating was negative prior to the review placement.

The agency also lowered the Warsaw-based bank's baseline and adjusted baseline credit assessments to "b3" from "b2," its long-term counterparty risk assessment to Ba3(cr) from Ba2(cr) and its long-term counterparty risk ratings to Ba3 from Ba2, and placed the ratings on review for further downgrade.

The agency said the ratings actions were triggered by the bank's first-half results. The lender posted a net loss of 163.8 million Polish zlotys for the period, up from a net loss of 112.5 million zlotys in the first half of 2017, driven by impairment charges on financial instruments amounting to 88.1 million zlotys, among other factors.

Moody's said the bank's large loss and additional impairments for the first half have further weakened its already low capital adequacy and set it back in its efforts to plug the gap in its minimum capital requirement despite its recent capital injection.

The review for further downgrade also reflect the agency's concerns that Getin Noble Bank could take a longer time to reduce its capital shortfalls than previously expected, Moody's noted, adding that the rating review will be closed following the analysis of the bank's third-quarter results.

At the same time, Moody's affirmed the bank's short-term bank deposit and short-term counterparty risk ratings at Not Prime and its short-term counterparty risk assessment at Not Prime(cr).

As of Oct. 9, US$1 was equivalent to 3.75 Polish zlotys.