Moody's downgrades International Investment Bank to 'Junk' status
Image by Andrius Zemaitis / Shutterstock.com
Moody's Investors Service has downgraded the Budapest-based International Investment Bank's (IIB) long-term issuer and senior unsecured debt ratings to "Ba1" from "A3."
At the same time, Moody's has placed IIB's ratings on review for further downgrade.
The action was triggered by the unexpected joint announcement of four European Union shareholders to plan to withdraw from the bank, published on March 2.
In their announcement, the Ministries of Finance of the Czech Republic, Romania, Slovakia, and Bulgaria state their intention to discontinue their shareholder participation in IIB, aiming for an orderly withdrawal.
Upon their withdrawal, Russia and Hungary will be the dominant shareholders in IIB.
Consequently, Moody's no longer assumes that these shareholders will provide additional non-contractual support to the bank in a situation of financial stress, Moodys.com reports.
MOL Shareholders Approve Dividend of Around HUF 250/Share
Gov't Awards HUF 6.5 bln of Subsidies to SMEs in Underdevelo...
Hungary's Largest ESG Consultancy Formed by Merger of EY, De...
Liz & Chain Rooftop Bar Debuts Sustainable Cocktails
SUPPORT THE BUDAPEST BUSINESS JOURNAL
Producing journalism that is worthy of the name is a costly business. For 27 years, the publishers, editors and reporters of the Budapest Business Journal have striven to bring you business news that works, information that you can trust, that is factual, accurate and presented without fear or favor.
Newspaper organizations across the globe have struggled to find a business model that allows them to continue to excel, without compromising their ability to perform. Most recently, some have experimented with the idea of involving their most important stakeholders, their readers.
We would like to offer that same opportunity to our readers. We would like to invite you to help us deliver the quality business journalism you require. Hit our Support the BBJ button and you can choose the how much and how often you send us your contributions.
