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Bank Pekao SAMoody's affirms Pekao lender's short and long-term deposit ratings, changes outlook to negative
Moody's Ratings has affirmed Bank Pekao A2/P-1 long- and short-term deposit ratings and has also affirmed the bank's BCA rating at baa2. The outlook has been lowered to negative.
"The affirmation of Bank Pekao's baa2 BCA reflects the bank's continued sound credit profile, that is supported by strong capitalisation and profitability, which we expect will remain strong supported by robust loan growth despite higher taxation," Moody's wrote.
"While asset quality metrics have moderately improved, problem loans still remain at a relatively high level. The affirmation of the bank's baa2 BCA also incorporates its strong funding, although with some reliance on more confidence sensitive corporate deposits, and large liquidity buffers which we anticipate will somewhat soften." it added.
Moody's pointed out that the affirmation of Bank Pekao's A2/P-1 long- and short-term deposit ratings reflects the affirmation of its baa2 BCA, unchanged two notches of rating uplift resulting from our Advanced LGF analysis and one notch of additional rating uplift following our assumption of a moderate likelihood of support from the government in case of need.
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