Moody's rates MDM Bank

Moody's Investors Service said it assigned Ba2 and not prime long- and short-term foreign currency bank deposit ratings and a D financial strength rating to MDM Bank.

At the same time Moody's added it has affirmed the Ba2/not prime ratings assigned to MDM Bank's $2 billion program for the issuance of loan participation notes.

The outlook is stable.

According to Moody's, the Ba2/not prime/D ratings are based on the fundamental credit strength of MDM Bank and do not incorporate any potential support from the authorities in case of need.

More specifically, the bank's ratings are underpinned by a recognizable name, experienced personnel and relatively strong positions in corporate and investment banking especially with regard to mid-market companies, the agency said.

At the same time, Moody's noted the bank's ratings are constrained by a lack of certainty with regard to possible amendments to the bank's strategy following the change of CEO, which at the same time represents an opportunity for the bank to revisit its strategy that has resulted in somewhat slower growth compared with its peers over the last two years and stiffening competition that could exert further pressure on interest margins.

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