S&P Retains Constant Rating of Latvijas Krajbanka
OREANDA-NEWS. On October 17, 2008, Standard & Poor’s Ratings Services revised its outlooks on AB Bankas “Snoras”(JSC) and AS “Latvijas Krajbanka”(JSC) to negative from stable. At the same times, the long-term and short-term counterparty credit ratings on the banks were affirmed, reported the press-centre of Latvijas Krajbanka.
The negative outlooks reflect Standard & Poor’s Ratings Services opinion that AB Bankas “Snoras”(JSC) and AS “Latvijas Krajbanka”(JSC) are likely to face increased pressure on their asset quality as economic conditions in the Baltics deteriorate. The outlook also assumes strained profitability due to the higher cost of risk and the maintenance of good funding and liquidity profiles.
The outlook could revert to stable if Standard & Poor’s concerns over the operating environment abate and asset quality figures and profitability prove resilient throughout the economic turbulence.