Moody’s upgrades rating of deposits in three RO banks in line with debt rating

International rating agency Moody's has upgraded the foreign currency (FC) deposit ratings of ten banks in the region, including three Romanian banks: BRD - Groupe Societe Generale, Banca Comerciala Romana (BCR), and Raiffeisen Bank, Economica.net reported.

The rating actions reflect changes in the local currency (LC) and foreign currency (FC) country ceilings applied to the banks' jurisdictions following the publication of Moody's updated Country Ceilings Methodology on December 7, 2020.

These changes reflect Moody's view that the risks that affect access to bank deposits are not materially different from those that affect the ability of banks and non-banks to service their debt obligations.

Country ceilings typically indicate the highest rating level that would generally be assigned to the financially strongest obligations of issuers domiciled in a country, absent exceptional considerations such as external support from outside the country.

The updated ceilings methodology has unified deposit ceilings with the typically higher debt ceilings, whereby LC and FC country ceilings are no longer distinguished between deposit and debt ceilings.

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