Moody's may lift Denizbank

Moody's Investors Service has placed on review for possible upgrade the Baa3/Prime-3 local currency deposit ratings of Denizbank.

At the same time, Moody's said it has affirmed the bank's D+ financial strength rating and B1/Not-Prime foreign currency deposit ratings.

This rating action results from Dexia Group's plan to acquire a controlling stake in Denizbank, the agency said.

In placing the Baa3/Prime-3 local currency deposit ratings on review for possible upgrade, Moody's expects that Dexia has the ability and willingness to provide external support in the event of need to Denizbank, at a level higher than was previously the case. Moody's notes that although specific legal entity, or entities, of the Dexia Group that will be purchasing Denizbank have not yet been publicly announced, the deposit ratings of all major entities of the group are significantly higher than Denizbank's own Baa3/P-3 ratings, implying considerable upside potential for Denizbank's local currency deposit ratings.

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