Moody’s affirms Ipoteka-bank’s rating at “В1/В1” with a “Positive” outlook and ESG Credit Impact Score at “CIS-2”
Posted by: 10 january, 2023
On the 15th of December 2022 Moody’s international rating agency announced Ipoteka-bank’s long-term foreign and local-currency deposit ratings. According to the report, Ipoteka-bank’s rating was maintained at “B1/B1”, with a “Positive” outlook.
The positive outlook reflects Moody's belief that Ipoteka-bank's ratings could gain from an increase of affiliate support as a result of its acquisition by OTP Bank.
According to Moody’s, Ipoteka-bank’s ratings reflects consistently good financial performance, supported by a solid net interest margin and moderate credit costs, which compares well with those of similarly rated peers. The bank's adequate asset quality and healthy funding and liquidity profile also support the ratings.
The agency’s analysts specify that Ipoteka-bank’s sustainable recurring earnings generation will remain supported by a net interest margin of around 6%. Moreover, the agency’s analysts believe that the bank’s profitability will remain broadly stable and ongoing business diversification will support asset quality over the next 12-18 months.
In addition, Moody’s assessed the bank’s ESG Credit Impact Score at neutral-to-low
(CIS-2) level, which considers the fact that very strong government support mitigates the negative effects of environmental, social, and governance concerns on credit ratings.
Ipoteka-bank remains focused on increasing its product and delivering high quality services to customers in all business segments. The main objective of the bank is to improve customer satisfaction and encourage long-lasting relationships to increase profitability.
