Moody’s Downgrades DSK and Raiffeisen Banks

The rating agency Moody’s has decreased the deposit rating of Bulgarian DSK Bank to Ba2/Not-Prime as well as the deposit rating of Raiffeisen Bank to Ba3/Not-Prime.

Their perspectives for development have been further decreased to ‘’stable’’.

A month ago Moody’s confirmed Bulgaria’s rating of Baa2 with a stable perspective.

The decision should reflect the balance between a stable budget situation, sustainable economic recovery rates and initiated reforms as compared to the risks of external shock conditions, for example the current fiscal crisis in Greece or other political risks.

One of the main factors for the decision made by the rating agency is the lower level of Bulgarian foreign debt as compared to the rest of the countries in the same credit category, as explained by the Ministry of Finance.

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