Moody's has a negative outlook on the Romanian banking system
Autor:
Claudia Medrega
01.03.2010
Moody's outlook on the Romanian banking system is negative, as
the rating agency expects that the rise of financing costs and of
non-performing loans to continue to weigh on banks' medium-term
profitability.
"Moody's negative outlook for the Romanian banking system
expresses the rating agency's view on the likely future direction
of fundamental credit conditions in the industry over the next 12
to 18 months. It does not
represent a projection of rating upgrades versus downgrades,"
reads a Moody's release.
On the Romanian financial market, the Moody's release did not
have immediate impact. "This report does not bring novelties. These
things were well-known," said a dealer of a local commercial bank.
In fact, on the market there are rumours on prospective
interventions of the NBR (National Bank of Romania), which is said
to be buying foreign currency in order to counter the appreciation
of the RON.
"Moody's expects increased credit and funding costs to
continue to weigh on Romanian banks' profitability over the
short-to-medium term amid the challenging economic outlook, while
the level of impaired loans
is likely to remain high given their typical delayed reaction
to any possible economic recovery."