The rating agency Moody’s on Tuesday raised the rating of Novo Banco’s debt by two levels, changing from the high risk level of default to that of speculative investments, which are still considered ‘junk’, with outlook (‘outlook’) positive. .
In a statement sent to the Securities Market Commission (CMVM), Novo Banco said Moody’s has increased its “long-term senior unsecured debt” ratings from Caa2 to B3 (the 6th lowest out of 21), and its “long-term term deposit” from B2 to Ba3.
The financial rating agency also increased Novo Banco’s baseline credit assessment by two levels, from caa1 to b2, and kept the ‘outlook’ (perspective) of long-term deposits and ‘long-term senior unsecured debt’.
According to Novo Banco, “Moody’s two-tier credit increase reflects ‘novobanco’s improved credit profile as a result of the continued reduction in balance sheet risk and significant business restructuring in recent years'”.
In the ratings action announced today, Moody’s also believed that ‘the presentation of the strategic plan and the setting of financial targets by the new bank, as well as confirmation of stable and consistent profitability, have contributed to the elimination of a number of existing concerns about the bank’s business viability,” he added.
Despite this upward revision of the rating, Novo Banco continues to be classified in the ‘speculative investment’ or ‘junk’ category by the financial rating agency.
Source: El heraldo
Jason Jack is an experienced technology journalist and author at The Nation View. With a background in computer science and engineering, he has a deep understanding of the latest technology trends and developments. He writes about a wide range of technology topics, including artificial intelligence, machine learning, software development, and cybersecurity.
