-Moody's to review for downgrade credit rating on Pohjola.
NORDIC BUSINESS REPORT-August 11, 2011--Moody's to review for downgrade credit rating on Pohjola(C)2011 M2 COMMUNICATIONS http://www.m2.com
11 August 2011 - Moody's Investor Service has put some of its credit ratings on Finnish Pohjola Bank Plc (HEL: POH1S), Pohjola Insurance Ltd and their parent OP-Pohjola Group on review for potential downgrade, Pohjola Bank said today.
The move concerns the B- bank financial strength rating (BFSR) of OP-Pohjola Group, the Aa2 long-term debt ratings of Pohjola Bank and the A2 insurance financial strength rating of Pohjola Insurance. The ratings on OP-Pohjola and Pohjola Bank may be cut by up to one notch.
According to Moody's, the earnings capacity of OP-Pohjola Group has weakened from the pre-crisis level in 2008 but the asset quality is expected to remain strong. The outlook on OP-Pohjola Group's BFSR has been "negative" since September 2009.
Any potential downgrade is not expected to affect the Aaa rating for covered bonds issued by OP Mortgage Bank, according to Moody's.
The agency confirmed its C- BFSR on Pohjola Bank as well as the bank's prime-1 short-term debt and deposit ratings.
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|Publication:||Nordic Business Report|
|Date:||Aug 11, 2011|
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