OREANDA-NEWS. On January 16, 2007 International rating agency Moody’s Investors Service has approved Parex banka’s long-term global local currency deposit rating Baa3 with a stable outlook. The Bank is the only investment grade rated private financial institution in the Baltic States, reported the press-centre of Parex banka. 

In its credit opinion Moody’s discussed Parex banka’s strong market position, strong nationwide franchise in Latvia, growing diversification of its product base and earnings, adequate capital base and good profitability, as well as increasing diversification of its funding sources, noting that Parex banka successfully retains its market positions, in spite of increasing competition with banks supported by international funding.

Mr. Valery Kargin, the President and Chairman of the Board of Parex banka, commented: “Notwithstanding the liquidity crises in global markets in the past year and an awareness of risk last seen in 1998, from the standpoint of rating agencies Parex banka remains investment grade. Meanwhile it is clear that the pace of economic development in Latvia will slow down, though we believe the country will continue to be prosperous in the future. Today we do not regret at all that we were not carried away by the latest financial instruments in the mortgage sector, but we decided to stick to our policy that our lending should not exceed substantially our customer deposits.”

In comparison with the end of 2006, the loan portfolio of Parex banka increased by 31,6% and reached LVL 1,732 million, while deposits amounted to LVL 1,823 million, an increase of 24,7%.